Kathy Gibson reports – Online retail is set to account for 10% of all retail spend in South Africa within just a few months, reaching a value of R130-billion by the end of this year.
Arthur Goldstuck, MD of World Wide Worx, points out that the online market was worth R96-billion in 2024, and accounted for 8% of all retail. With continued massive growth – 35% in both 2024 and 2025 – it continues on its growth trajectory.
He says the findings mark a turning point for South African retail. “The transformation of this market over the past decade has been extraordinary. Online retail has moved from being an experiment on the margins to a structural force in the economy. Nearly one in every ten rand spent at retail will now be online.
“What is most important is not just the pace of growth but the breadth of it: we are seeing double-digit increases across groceries, fashion, health and beauty, and value retail. The evidence is overwhelming that e-commerce is now the growth engine of South African retail.”
Goldstuck presented the result of the Online Retail in South Africa 2025 study, conducted by World Wide Worx in conjunction with Mastercard, Peach Payments and AskAfrica.
Finding from AskAfrica’s study outline long-term market trends in the South African online retail space, with findings from 2024.
Older shoppers are starting to go online more than ever, with those aged 35 to 64 – at the peak of their earning potential – are now moving to online platforms.
Meanwhile, the percentage of shoppers in SEO level one – the people in the top socio-economic group – have significantly increased their online spend, from 63,8% t0 77,7%.
Consumers who shop more frequently, measured by income level, are dominated by those earning between R30 000 to above R50 000.00.
Those who have spent online in the last six months have also significantly increased their spend.
Takealot was still the dominant retailer that shoppers used in 2025, with 20,9% of sales, followed by Superbalist and Homechoice, then online grocers like Pick and Pay and Checkers.
In 2024, new entrants made a big entrance: Shein and Temu accounted for 15,3% and Amazon with 12,3%.
People are still shopping mainly for clothing (30,2%) followed by groceries.
In 2023, half of shoppers were using mobile devices. This increased to 55,9% in 2024.
Asked about online shopping attitudes, most consumers agreed that the Internet allows shoppers to research products before they purchase it (28,2%)
Shoppers also check multiple sources (23,1%) and convenience (22,1%). A number of people still prefer an in-store experience (21,9%).
Goldstuck points out that trust is an important criterion for online shoppers, who want to trust both the retailer and the payment method.
A separate World Wide Worx poll outlines the current state of the online retail market in 2025.
This survey shows that South African platforms dominate (48%), followed by retailer websites (13%) and international platforms (9%). Social media follows at 7%, WhatsApp at 6%, in-store apps at 6% and flash sales at 5%.
“The numbers show that shoppers prefer to use local platforms compared to international platforms,” Goldstuck says.
The most popular local platform is Takealot (45%), followed by Checkers Sixty60 at 16%, then Pick ‘n Pay at 8%, Woolworths at 7%, Makro and Superbalist at 5%.
The main reason people gave for shopping on international platforms is better deals. “But even at 17%, this is not a massive threat,” says Goldstuck, pointing out that local retailers have responded with similar deals. Consumers also look for unique products and product availability, but at 7% and 5%, he says these are not a significant threat to local players.
About half of users trust local platforms more than international ones compared to just 10% who trust international players.
The biggest challenges for international platforms are delivery times (31%), customs fees (19%) and shipping costs (14%). This is followed by return policies, security concerns, product quality and the payment process.
Cost savings dominate the reasons people would subscribe to retail platforms, followed by convenience, free delivery, regular deliver and exclusive products.
In terms of delivery, 17% of shoppers are very likley to sign up for subscription services; 18% are somewhat likely; and 31% are neutral – but Goldstuck points out that this cohort could be easily swayed.
Lower prices will encourage 35% of users to shop more locally, 19% say faster delivery in key, followed by product variety (12%) and loyalty reeards (10%).
The preferred payment methods are still credit cards (50%) and bank transfers (26%), including PayShap users. Mobile wallets, Capitec Pay, buy now-pay later (BNPL), PayPal and QR codes account for single-digit percentages.
Consumers are open to trying new payment methods, and today 35% of shoppers have already bought something from a link in WhatsApp. They are comfortable (20%) or very comfortable (11%), with 30% neutral.
Security would make them feel more comfortable, so verified merchants, secure gateways and biometrics are key.
Artificial intelligence (AI) is being used in online shopping: 39% of shoppers say they have been exposed to AI bots while sopping, 20% are not sure; and 41% say they have not.
A significant 26% of consumers are used AI in their online shopping, and this is expected to grow.
Goldstuck points out that online retail is seeing healthy growth, and this is only going to continue, with a massive 57% of shoppers saying they will spend more online in the next 12 months.
Retailers across all categories are reporting robust online performance. Shoprite’s “Checkers Sixty60” platform grew by 47% in the first half of 2025, generating nearly R19-billion in sales. Pick n Pay’s on-demand and scheduled delivery services expanded by more than 60% in its most recet financial year, while Woolworths recorded a 37% increase in online sales of fashion, beauty and home products, alongside nearly 50% growth in its “Woolies Dash” grocery delivery service.
The Foschini Group reported a 40% increase in “Bash” platform sales, which now contribute 12% of group turnover, while Truworths’ online channel reached 6% of South African sales after growth of 38%.
Retailers such as Mr Price and Clicks, though starting from smaller bases, also reported double-digit growth in their online divisions.
But more than one-third of retailers believe check out processes are too long and complicated, leading to cart abandonment.
They say success factors revolve around customers service, stock availability and having a wide range of products available.
Two- thirds of retailers say Shein and Temu have had no impact on their sales, with 20% saying there is minimal impact.
Just 9,4% of retailers have seen reduced transaction value, 72,1% have seen no impact, and 7,5% have actually seen increased transaction values.
To compete with international platforms, 53,2% don’t thins they have to do anything; 22,9% will offer competitive pricing, and 18,9% plan faster delivery. Most (63,7%) believe their e-commerce experience is better than the international platforms.
Today, one-third(35,8%) of retailers are using WhatsApp in their sales, and 51,2% are using it for promotions.
Biggest concern for WhatsApp is the integration with payment gateways (38,8%), reconciliation with other systems (29,9%). Consumer trust and fraud scams are also significant concerns for users and retailers.
When it comes to AI, most retailers will use AI-powered tool for marketing and content generation (53,7%).
A significant 73% of e-commerce sites say they are profitable, with 42,3% bebeingign very profitable. Just 4% are making a loss.
And there is massive optimism regarding growth prospects, with 93% saying they are optimistic. “That is to be expected,” says Goldstuck. “They can see the growth happening, and are experiencing it.”
This growth is far outpacing traditional retail, which is expected to achieve a 2% growth this year. Meanwhile, online retail continues to see annual growth of 35% and more.