The BER’s Retail Survey for the fourth quarter of 2025 shows business confidence jumped to 43% up from 32%, returning to levels seen during the first half of the year.

The BER’s Nomvelo Moima attributes the improved sentiment to “more favourable trading conditions, buoyed by improved sales volumes and profitability in the sector”.

Breakdown of sentiment 

Durable goods retailers, that’s those selling hardware, furniture and household appliances, had the strongest performance during the quarter under observation, due to recovering household credit growth and easing pressures on disposable income. 

The easing pressures include two-pot retirement withdrawals, which have led to consumers purchasing more furniture and household appliances. 

“The improvement in non-durable goods on the other end is not as easy to explain in terms of what we see in official statistics, seeing that general dealers haven’t been doing that well on a year-on-year basis.” 

Vehicle sales

Business conditions in the vehicle industry have improved as compared to last year, boosting sales. This is evidenced in data from the Automotive Business Council (Naamsa) and Stats SA, which display solid sales.

This is in part due to affordable vehicle options from China, as well as better access to credit and less restrictive interest rates. Whilst sentiment amongst dealers is positive, the downside is that premium brands manufactured locally aren’t seeing great sales, which is a slight dampener on the overall figure. 

#ZAMotorTrade || #Motor trade increased by 2,0% y/y in October, lifted by new vehicle sales.

Read more here: https://t.co/ze0501OAm9#StatsSA #KnowYourStatsZA #GovZAUpdates pic.twitter.com/OzA06Suei2

— Statistics South Africa (Stats SA) (@StatsSA) December 10, 2025

Retail sales

Speaking of sales in the sector those remained quite robust in October with 2,9% year-on-year growth in sales volumes. Standard Bank’s Dr Elna Moolman said this retail data by Stats SA has been volatile this year “and the strong month-on-month growth in October follows two consecutive months of month-on-month contractions in sales volumes”. Consumers are benefiting from relatively lower inflation, though this tailwind has faded notably in the last few months.

#ZAretail || Retail trade sales grew by 2,9% y/y in October, with textiles & clothing the main driver of growth.

Listen here for more: https://t.co/dPbwTgVtsT #StatsSA #GovZAUpdates pic.twitter.com/aOaE9vHiqh

— Statistics South Africa (Stats SA) (@StatsSA) December 10, 2025

Positive momentum  

Consumers have surprised pundits this year, displaying resilience amid challenging conditions. The BER economist thinks this momentum will continue with retail activity remaining positive. 

This is echoed by the recent results of FNB/BER’s Consumer Confidence Index released earlier in the week. It rebounded to -9 index points in the fourth quarter, after falling from -10 to -13 in the third quarter of 2025.

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