: South Africa’s online retail sector is entering a new era, with e-commerce turnover expected to exceed R130-billion by the end of 2025 and capture nearly 10% of the country’s total retail market. This is the central finding of the Online Retail in South Africa 2025 report, produced by World Wide Worx in collaboration with Mastercard, Peach Payments and Ask Afrika.
The study revealed that online retail grew by 35% in 2024, reaching R96-billion, representing 8% of total retail sales. Growth has continued through 2025 at an annualised rate of 38%, far outpacing physical retail, which increased by just 2.5% in 2024 and 1.6% by mid-2025, leading to a structural realignment of South African commerce, with digital platforms now embedded in everyday consumer behaviour.
Arthur Goldstuck, CEO of World Wide Worx, said the findings mark a turning point for South African retail.
“The transformation of this market over the past decade has been extraordinary,” he said. “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.”
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 recent 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.
Gabriel Swanepoel, country manager for Mastercard South Africa, highlighted the central role of payments in enabling this growth.
“The growth of online retail reflects the combination of consumer trust and reliable payments,” he said. “Secure, seamless transactions are what allow retailers to scale at speed and consumers to shop with confidence. This combination of trust and efficiency is turning digital activity into real economic growth, and at Mastercard we are providing the rails that power this transformation.”
Swanepoel said that inclusivity remains critical to long-term growth. “Momentum is no longer limited to major cities. It is in smaller towns and among middle-income households as connectivity improves and secure payments open access. This shows how digital inclusion is expanding opportunity well beyond traditional retail hubs.”
Global entrants have added further momentum. Amazon launched its South African site in May 2024 with a modest catalogue of 150,000 products, but has since expanded into groceries, pet food and health supplements. In January 2025, Amazon opened a walk-in seller centre in Cape Town to onboard and support South African SMEs, signalling its long-term intent. In the fashion sector, Shein and Temu reached an estimated R7.3-billion in turnover in 2024, equal to 3.6% of the clothing, textile, footwear, and leather (CTFL) market and nearly 40% of online sales in the category. However, stricter enforcement of customs rules and the closure of VAT loopholes have narrowed their price advantage, and their rapid ascent is expected to slow in 2025.
Rahul Jain, CEO of Peach Payments, said the report confirms that South African e-commerce has reached a new level of maturity.
“Online retail has reached a stage where maturity matters as much as momentum,” he said. “South African retailers are no longer only testing e-commerce; they are scaling it profitably. This report shows that the ecosystem is ready for its next phase, built on robust payments, efficient logistics, and growing consumer trust.”
Jain said that the focus for the next few years will be on deepening consumer relationships.
“Convenience and speed brought consumers online during the pandemic, but loyalty will be built on experience. That means seamless checkout, predictable delivery, and trust in every transaction. These are the areas where South African retailers are now investing, and it is why we believe the next wave of growth will be even more sustainable.”
The report projects that by 2027, online retail will exceed R150-billion and account for 12% of total retail turnover, cementing its role as the structural driver of growth in South African commerce.