South Africa’s online retail set to surpass R130 billion as E-Commerce becomes growth engine

A new report from World Wide Worx, produced with Mastercard and Peach Payments, shows online sales in South Africa are expanding nearly 20 times faster than physical retail, cementing digital platforms as a structural driver of the country’s economy.

South Africa’s e-commerce sector is entering a defining stage, with online turnover projected to exceed R130 billion by the end of 2025, representing almost 10% of the nation’s retail market. That is according to the Online Retail in South Africa 2025 report, published by research firm World Wide Worx in collaboration with Mastercard and Peach Payments. By 2027, the report estimates online sales will top R150 billion and account for 12% of total retail, establishing digital platforms as a long-term growth engine.

The study highlights that online retail surged 35% in 2024 to reach R96 billion, equal to 8% of overall sales. Momentum has carried into 2025, with annualized growth of 38%, compared with just 2.5% for brick-and-mortar retail last year and 1.6% so far this year. World Wide Worx CEO Arthur Goldstuck described the shift as “a turning point” for the sector, noting that nearly one in every ten rands spent at retail now happens online. He added that the expansion is broad-based, with double-digit gains across groceries, fashion, health and beauty, and value retail.

Major retailers are reporting strong digital results. Shoprite’s Checkers Sixty60 delivery service grew 47% in the first half of 2025, generating nearly R19 billion in sales. Pick n Pay’s online services expanded more than 60% year-on-year, while Woolworths posted a 37% increase in online fashion, beauty and home sales alongside nearly 50% growth in its Woolies Dash grocery offering. The Foschini Group’s Bash platform jumped 40% and now represents 12% of group turnover, while Truworths’ online channel climbed 38%, reaching 6% of South African sales. Mr Price and Clicks also reported double-digit online growth from smaller bases.

The payments ecosystem is central to this transformation, according to Mastercard South Africa Country Manager Gabriel Swanepoel. “Secure, seamless transactions are what allow retailers to scale at speed and consumers to shop with confidence,” he said. He noted that growth is spreading beyond major cities, with middle-income households and smaller towns driving momentum as connectivity improves.

Global players are also reshaping the market. Fast-fashion giants Shein and Temu recorded R7.3 billion in 2024 sales—equal to 3.6% of the local clothing, textile, footwear and leather sector, and nearly 40% of online sales in that category. However, recent moves to enforce customs duties and close VAT loopholes are expected to slow their pace of expansion.

Rahul Jain, CEO of Peach Payments, said the sector’s maturity is now as important as its speed. “Retailers are no longer experimenting with e-commerce—they are scaling it profitably. The ecosystem is ready for its next phase, built on robust payments, efficient logistics and consumer trust.” Looking ahead, Jain expects investment to focus on customer loyalty through seamless checkouts, reliable deliveries and consistent user experience.