The digital shift transforming South African retail

South Africa’s retail landscape is on the brink of a revolution. As the nation grapples with evolving consumer behaviours, a profound structural reset is taking place.

By the end of 2025, online sales are projected to soar past R130 billion, claiming nearly 10% of the national retail market.

This dramatic increase, against a backdrop of flat offline growth, signifies not merely a temporary surge but a long-term shift in how South Africans engage with the retail sector.

Current research unambiguously indicates that the customer journey has shifted towards the digital realm.

Two-thirds of consumers now consider the ease of finding products as the most critical factor in their shopping experience, closely followed by a range of safe and secure payment options (61%) and a seamless checkout process (60%).

Notably, 57% of shoppers turn to the internet to discover and research products prior to making in-store purchases—an increase from 42% in just one year. This demonstrates that the path to purchase often begins long before consumers step into a physical store.

A blended journey: digital meets physical

While physical stores maintain their importance for sensory and social engagement, the process of decision-making is progressively being shaped in digital environments.

A recent PwC survey highlights this blurring of lines: 83% of consumers actively compare prices between apps, 69% utilise these technologies to double-check prices before making in-store purchases, and 75% favour physical stores when comparing prices across multiple retailers.

Greg van der Riet, Chief Commercial Officer at payments platform PayJustNow, emphasises the necessity of adopting ‘phygital’ strategies, those which seamlessly integrate online exploration with in-store experiences.

“Retailers must rethink how they attract, engage, and retain customers across channels,” he said.

“A website or app can no longer serve as a static catalogue; it needs to evolve into a dynamic space brimming with inspiration, discovery, and comparison, all linked to the overall retail experience.”

From payments to discovery

Flexible payment options are just one facet of this evolving landscape. Consumers are now seeking shopping experiences that are personalised, convenient, and specifically tailored to their financial realities. Platforms such as PayJustNow exemplify this trend.

Initially conceived as a buy-now-pay-later (BNPL) service, PayJustNow has morphed into an expansive digital hub allowing users to browse, discover, and pay for products while enjoying features like trending retail categories and personalised brand recommendations.

For retailers, the tangible effects of this new approach are undeniable. Reports indicate that some retailers utilising PayJustNow have seen sales increase by over 130% when integrating the BNPL option into their checkout processes.

This remarkable growth is not confined to seasonal peaks; in fact, during Black Friday 2024, the platform had a staggering 103% year-on-year sales increase across various sectors, including fashion, electronics, and automotive parts.

Furthermore, in October 2025, a dramatic 4.5 million clicks were routed to retail partners, reflecting a staggering 275% growth in engagement compared to the previous year.

The stakes for retailers

Understanding the demographics driving these trends is crucial.

The average user is in their mid-30s, spends around R1,500 per shopping basket, and exhibits a robust track record, having completed 13 purchases.

Women account for three-quarters of this customer base. Retailers must recognise that South African consumers are evolving and increasingly seek innovative payment solutions.

For those hesitant to adapt, the risk is grave; they may lose visibility during critical stages of discovery and, ultimately, at the payment point.

“South African consumers are shopping differently and demanding more sophisticated payment methods,” states van der Riet.

“The future success lies in embracing digital channels not as mere sales platforms but as holistic experience platforms where inspiration, discovery, comparison, and payment seamlessly converge. Retailers who thrive in this environment will not only secure immediate sales but establish their relevance in a retail future increasingly dominated by a digital-first approach.”

BUSINESS REPORT