Hardware retailers struggling despite stronger consumer spending

South Africa’s hardware, paint and glass retailers remained under pressure in July, even as the broader retail sector posted its strongest annual growth in months. According to the latest figures from Statistics South Africa, overall retail trade sales rose 3.4% year-on-year in real terms during July 2026.

However, the hardware segment failed to share in the recovery. Sales at hardware, paint and glass retailers declined 1.1% year-on-year in July, making it one of the few retail categories to contract during the month.

Long-term weaknesses evident

The weakness was also evident over a longer period. Retail sales in the hardware, paint and glass category fell 1.8% during the three months ended July 2026 compared with the same period a year earlier, reducing overall retail growth by 0.1 percentage points.

The contrast with other retail segments was stark. General dealers recorded growth of 3.2%, while retailers in food, beverages and tobacco in specialised stores grew 4.8% and other retailers expanded by 6.8% in July. These sectors were among the largest contributors to the overall increase in retail activity.

READ MORE: GDP drops 0.2% in second quarter of 2026

Despite the annual decline, there were signs of a short-term rebound in hardware sales. On a seasonally adjusted basis, hardware, paint and glass retailers recorded a 2.7% month-on-month increase in July, with sales rising from R7.5-billion in June to R7.7-billion in July at constant 2019 prices.

Industry observers may view the figures as evidence that consumers continue to prioritise everyday spending such as groceries and household essentials, while discretionary spending on home improvement projects remains subdued. The data suggest that while South Africa’s retail sector is gaining momentum overall, hardware retailers are still waiting for a sustained recovery in demand.

READ: Cashbuild grows sales but earnings slide as Malawi exit weighs on results

Overall, the July results paint a mixed picture for the hardware industry: annual sales remain weaker than a year ago, but improving month-to-month performance could indicate the first signs of stabilisation after several challenging months.

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  • South Africa's overall retail trade sales grew 3.4% year-on-year in real terms in July 2026.
  • Sales at hardware, paint, and glass retailers declined 1.1% year-on-year in July 2026.
  • Retail sales in the hardware, paint and glass category fell 1.8% during the three months ended July 2026 compared to the previous year.
  • General dealers, food, beverages and tobacco retailers grew by 3.2%, 4.8%, and 6.8% respectively in July 2026.
  • On a seasonally adjusted basis, hardware, paint and glass retailers recorded a 2.7% month-on-month sales increase from June to July 2026.
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South Africa’s hardware, paint and glass retailers remained under pressure in July, even as the broader retail sector posted its strongest annual growth in months. According to the latest figures from Statistics South Africa, overall retail trade sales rose 3.4% year-on-year in real terms during July 2026.

However, the hardware segment failed to share in the recovery. Sales at hardware, paint and glass retailers declined 1.1% year-on-year in July, making it one of the few retail categories to contract during the month.

The weakness was also evident over a longer period. Retail sales in the hardware, paint and glass category fell 1.8% during the three months ended July 2026 compared with the same period a year earlier, reducing overall retail growth by 0.1 percentage points.

The contrast with other retail segments was stark. General dealers recorded growth of 3.2%, while retailers in food, beverages and tobacco in specialised stores grew 4.8% and other retailers expanded by 6.8% in July. These sectors were among the largest contributors to the overall increase in retail activity.

READ MORE: GDP drops 0.2% in second quarter of 2026

Despite the annual decline, there were signs of a short-term rebound in hardware sales. On a seasonally adjusted basis, hardware, paint and glass retailers recorded a 2.7% month-on-month increase in July, with sales rising from R7.5-billion in June to R7.7-billion in July at constant 2019 prices.

Industry observers may view the figures as evidence that consumers continue to prioritise everyday spending such as groceries and household essentials, while discretionary spending on home improvement projects remains subdued. The data suggest that while South Africa's retail sector is gaining momentum overall, hardware retailers are still waiting for a sustained recovery in demand.

READ: Cashbuild grows sales but earnings slide as Malawi exit weighs on results

Overall, the July results paint a mixed picture for the hardware industry: annual sales remain weaker than a year ago, but improving month-to-month performance could indicate the first signs of stabilisation after several challenging months.

Subscribe To Our Newsletter

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