JSE-listed retail giant Woolworths revealed a stellar performance for the 26 weeks ending 29 December 2024, with online sales skyrocketing by 37.2%, driven largely by its on-demand service, Woolies Dash, which saw a 49.2% surge. Online sales now make up 6.4% of total Food sales.
The retailer’s South African operations reported a 9.1% growth in turnover and concession sales, with its Food business leading the charge at 11.4% growth.
Excluding Absolute Pets, acquired last year, Food sales still rose by 9.0%. Price increases averaged 6%, while trading space grew by 1.3%.
Despite a 3.7% dip in its Financial Services book, Woolworths highlighted a sector-leading annualised impairment rate of 5.4%, down from 6.3% the previous year. The retailer credits its success to improved availability, innovation, and a strong value proposition, solidifying customer trust in the Woolies brand.
South Africa’s retail sector has entered the age of ecommerce, with total online retail sales expected to reach R42-billion by the end of 2021. From the rise of contactless payments to the boom in social commerce, the pandemic has significantly altered consumer expectations when it comes to making purchases online.
To unpack the major trends in the digital retail industry and explore the legacy of Covid-19, online payment gateway PayFast has launched their second annual Ecommerce Performance (PEP) Index.
“We saw a 178% increase in QR code payments, and a 55% growth in mobile usage for online shopping over 2021. This indicates that the habits picked up by consumers during hard lockdown are here to stay,” says Colleen Harrison, Head of Marketing at PayFast.
“This year’s index analyses the long-term impact of the pandemic on consumer behaviour, and offers extensive insight into the ecommerce landscape heading into 2022.”
The report features insight from a selection of PayFast’s expert partners, including Mastercard, SnapScan, TymeBank, Ecwid, Xero, and Retail Capital, as well as key industry, payment and buyer data sourced from PayFast platforms over the past year.
“One of the key takeaways of this year’s PEP Index is that payment innovation is removing barriers for consumers to transact online, allowing more people to participate in the growing digital economy,” says Harrison.
Over the course of 2021, South Africa’s retail industry has adapted to constantly changing lockdown restrictions, and ever-evolving customer experience requirements. To understand the impact on local ecommerce businesses, PayFast conducted a survey across their merchant database.
“Despite a difficult year, 48% of merchants saw an increase in revenue, spurred on by a 50% increase in online sales. This highlights the importance of meeting customers where they are – online,” says Harrison.
