South Africa Q3 Retail Shows R167.5 Billion FMCG Strength, Tech Sales Decline
Overall, while FMCG performance remained robust, the retail environment reflects cautious consumer behavior, with price sensitivity and careful spending continuing ahead of the festive season.
Food, the largest FMCG category by value, rose 8% to reach nearly R61.7 billion in the third quarter. South Africa’s retail industry experienced solid growth during the third quarter of 2025, supported by continued consumer spending on both essential and discretionary fast-moving consumer goods (FMCG). However, the country’s technology and durable goods sector continued to face pressure, according to NielsenIQ (NIQ) South Africa.
The latest State of the Retail Nation report from NIQ shows that total FMCG expenditure across traditional and modern trade channels reached approximately R167.5 billion from July to September. This amount reflects a year-on-year growth of 7.1% in sales value, alongside an 8.7% increase in unit sales. The combination of higher volumes and moderate inflation suggests that consumer demand remained stronger than anticipated, despite broader economic challenges.
The findings arrive amid long-term structural issues in South Africa, including economic growth averaging below 1% for over a decade and a broad unemployment rate above 40%. Despite these challenges, household spending patterns remain resilient in priority FMCG categories.
In contrast, the Tech & Durables (T&D) sector showed continued weakness. NIQ market tracking data indicates that telecommunications devices, such as smartphones, tablets, and related products, contributed significantly to the decline. Spending in the T&D segment fell 3% from the previous year, totaling R21.5 billion in the third quarter.
The downturn in telecoms devices is attributed to delayed consumer upgrades, limited disposable income, and shifting household priorities. Additionally, the trend reflects lengthened device replacement cycles, as consumers increasingly retain older handsets due to rising prices.
Overall, while FMCG performance remained robust, the retail environment reflects cautious consumer behavior, with price sensitivity and careful spending continuing ahead of the festive season.
