The share of retail sales that are completed online has risen to 10% of all retail sales, and online retail is expected to grow by 22.5% to R159-billion this year, compared with 2025, when the share of online retail sales was R130-billion.
Although the growth is less than the 35% growth between 2024 and 2025, this figure still represents a significant quantum of growth. The expected R29-billion increase in turnover from online sales this year is almost as large as South Africa’s entire online retail market in 2020, when sales totalled about R30.2-billion, technology research company World Wide Worx MD and principal analyst Arthur Goldstuck revealed on September 2.
The growth in online retail is being accompanied by stronger commercial results, he said during a presentation of the ‘Online Retail in South Africa 2026’ report, which is published by World Wide Worx in partnership with payments companies Mastercard and Peach Payments, and market research company Ask Africa.
Online retail company Takealot Group recorded its first full-year trading profit 15 years after launch during the past year and reported earnings before interest and tax of R171-million, said Goldstuck.
Supermarket company Pick ‘n Pay’s online operation was profitable for a second consecutive year, and its online turnover increased by 32.7%.
Similarly, supermarket company Checkers Sixty60 sales grew 34.5% to R25.5-billion in the year to June 2026, following growth of 47.7% in the previous year.
Fashion retailer The Foschini Group (TFG) Africa’s online sales grew 49.2% and reached 8.2% of divisional sales, while supermarket company Woolworths’ Woolies Dash grew 19.6%.
The sector’s progress is no longer confined to rapid turnover growth. Retailers are using marketplaces, fulfilment services, subscriptions, loyalty programmes and advertising to improve the economics of digital operations, Goldstuck said.
Additionally, more than 66% of respondents to the study said they were more likely to shop online during the next year, up from 57% of respondents in the 2025 report.
“This is one of the clearest shifts we saw this year, and is good news for online retailers,” he said.
“South African online retail has grown from less than 1% of retail turnover to a tenth of the market in a decade. Retailers are no longer funding digital commerce as a side project. They are building fulfilment, loyalty, marketplaces and advertising into the same operating system as their stores.”
Takealot remains the most-used platform, used by 35.3% of online shoppers, followed by online fashion retailer Shein at 21.5% and Checkers Sixty60 at 15%. Online retailer Amazon was used by 12.7% of online shoppers.
This figure is derived from data before the South African launch of Amazon’s Prime offering in the country in June, he said.
South Africa is Amazon’s twnety-seventh Prime market, and the company undercut its own prime video prices in the local market, on a dollar-equivalent basis, which indicates a strategy to drive volumes, Goldstuck said.
With the launch of Amazon’s Prime streaming and free shipping offering in South Africa, its 12.7% share of the online retail market is expected to increase during this year, he added.
Further, subscription-based services, mainly offering free delivery for online purchases and loyalty rewards, are also expected to see growth this year.
While about 25% of respondents said they were not considering signing up to an online retail subscription service in the coming six months, more than 50% of respondents said they were somewhat or very likely to sign up for such as service.
This was mainly because people saw value from having free delivery, especially for groceries bought online, said Goldstuck.
Of the 1 400 respondents to the study survey, more than 66% said they shopped online from a local platform during the past year, with more than 75% saying they shopped online monthly or weekly from local online retail platforms.
However, 53% of respondents said they never shop online from international online retailers, down from 56% in the 2025 report, indicating that they were winning over shoppers, and about 25% of respondents said they do shop on international platforms.
Mostly younger shoppers shop from international retailers in search of good value deals – typically fashion and clothing – while older shoppers, who tend to have more disposable income, instead look for quality and assurances, rather than a better price, he said.
Further, the percentage of respondents who said they were likely to try a new payment method during the coming 12 months rose significantly to more than 71%, up from 40% a year prior.
This was likely because people are becoming more aware of and comfortable with the emerging payment methods.
Meanwhile, the main reason shoppers abandon their digital carts is because their payment method was declined. Other reasons given by respondents include additional shipping fees, the requirement to create an account to check-out, or the checkout process being complicated.
Further, the study also found that checkout errors were high, which indicates an area that could be improved on.
“Digital commerce has become part of everyday trade in South Africa. The next gains will depend on giving consumers payment choices that are secure, simple and accessible, while helping merchants reduce friction at checkout,” said Mastercard Africa Division president Gabriel Swanepoel.
“Secure digital payments remain critical, as more consumers use online retail and make more frequent purchases. As the market expands, every successful transaction strengthens trust and makes it easier for more people and businesses to participate in the digital economy,” he said.
For retailers, the commercial focus had moved towards conversion and repeat use, said Peach Payments CEO and co-founder Rahul Jain.
“South African merchants have already done much of the work required to build reliable online operations. Their focus now is on converting more visits into completed purchases and earning repeat business.
“Fast authentication, dependable payment processing and a checkout that works well on a smartphone can have a direct effect on revenue. The best payment experience is one that removes effort while preserving security,” he said.
The report showed that established online shoppers are buying more frequently and across more categories. Convenience has become a stronger motivation than saving money or finding lower prices, said Ask Africa CEO and founder Andrea Rademeyer.
“The growth in turnover indicates a deepening of online shopping behaviour among current users, alongside the opportunity to bring millions more connected South Africans into the market,” she said.
Meanwhile, compared to international online retail sales, South Africans are not buying as many large items, such as home goods, furniture, appliances and hardware, through online channels as consumers in other markets do, said Goldstuck.
For example, consumer electronics is a lead item bought online in many other markets but is only a side category in South Africa’s online retail landscape, he said.
