Retail’s strong growth momentum to continue in 2025, say Industry Leaders

Clur Connect launches to spotlight SA’s Retail Strength and Global Influence

Top 3 Key Takeaways

• Retail property is on a strong upward trajectory, driven by lower interest rates, reduced loadshedding, and stable political conditions.
• Consumers are returning to shopping centres for experiences, with demand for retail space and trading densities continuing to rise.
• Retailers investing in store refurbishments and innovation are seeing sales growth of up to 30%, reinforcing the value of customer experience.

South Africa’s retail property sector has entered 2025 with strong momentum, following a year of solid performance, rising trading densities, and growing retailer demand for space. Major retail property executives expect these trends to continue, driven by economic stabilisation, improved energy security, and evolving consumer spending patterns.

These insights were shared in the first edition of Clur Connect, a new video-based retail property performance report launched by Clur International. This initiative, part of the Clur Collective, aims to showcase South Africa’s world-class retail sector, track economic trends, and highlight the industry's global leadership.

The Clur Collective currently monitors more than 5.4 million square metres of retail space across 130 shopping centres in South Africa and Namibia.

“We have world-class and forward-thinking shopping centres, asset managers, and retailers in this country. South Africans often undersell themselves on the global stage. We need to shift our thinking to a position of strength rather than weakness. When it comes to retail, we have much to teach the world.”
Belinda Clur, Managing Director, Clur International

A Booming Festive Season Fuels Optimism

The November-December 2024 festive season outperformed expectations, with a notable increase in trading densities across shopping centres. Executives pointed to Black Friday’s expanded influence, strong consumer demand, and the impact of reduced loadshedding as key drivers.

“Black Friday is no longer a single-day event. Shopper patterns have stretched over a week, leading to stronger performance.”
— José Snyders, CEO, Liberty Two Degrees

Old Mutual Property’s Muhammad Paruk reported a vibrant retail environment, with entertainment, beauty, healthcare, and athleisure leading sales growth. He noted that dwell times and foot traffic had increased, with shoppers seeking immersive and experiential retail.

“Retail therapy is back. Consumers want to be in shopping centres, looking for unique experiences. Retailers are aggressively expanding their store footprints.”
— Muhammad Paruk, CIO, Old Mutual Property & Vice President, SA Council of Shopping Centres

Similarly, SA Corporate Real Estate’s Mark Mac Kaiser highlighted a strong continuation of Black Friday momentum into Christmas, with grocery, pharmacy, and liquor sales leading the way. Athleisure and outlet stores also experienced an uptick, reinforcing the demand for brand-driven, experiential shopping.

“Retailers kept pricing attractive, which encouraged higher spending levels throughout the festive season.”
— Mark Mac Kaiser, Retail Asset Manager, SA Corporate Real Estate

Retail Space Demand & Investment Trends for 2025

Looking ahead, 2025 is expected to see continued retail rental and trading density growth, albeit at a steady pace rather than a boom.

“We expect continued stable growth in 2025. While it may not be as accelerated as landlords would like, consumers have money to spend, and we have the right brands to attract them.”
José Snyders, CEO, Liberty Two Degrees

Leemisa Tsolo, Asset Manager at Attacq, noted that store refurbishments had proven to be a major revenue booster, with tenants often seeing 20-30% growth in sales after revamping their spaces.

“Our strategy is to incentivize tenants to keep refurbishing stores. A fresh, modern look makes a significant difference.”
— Leemisa Tsolo, Asset Manager, Attacq

Ben Kodisang, Founder & CEO of ALT Capital Partners, emphasised the importance of social impact retail in underserved communities. His firm’s REimagine Social Impact Retail Fund is set to invest an additional R1 billion in convenience retail development.

“Retail plays a critical role in community upliftment. By bringing economic activity closer to people, we’re addressing social challenges like gender-based violence and unemployment.”
— Ben Kodisang, CEO, ALT Capital Partners

Small Centres Take the Lead in Growth

A key trend emerging in 2024 and set to continue in 2025 is the rising dominance of smaller shopping centres.

“Smaller centres have taken over as the dominant growth segment. This reinforces the significance of social impact retail and community involvement.”
— Belinda Clur, Managing Director, Clur International

This shift aligns with the growing preference for convenience-focused retail, where consumers favour smaller, well-located centres that offer essential and experiential shopping in one place.

What’s Next for Retail in 2025?

With market risk stabilising and the rent-to-sales ratio remaining at its lowest level in five years, 2025 is poised for further retail growth. While executives do not foresee a property boom like the 2004-2008 period, they expect trading densities, foot traffic, and rental performance to outpace inflation.

“Retailers and landlords who focus on innovation, experience, and convenience will see the biggest gains in 2025.”
— Belinda Clur, Managing Director, Clur International

As Clur Connect continues to track these trends, South Africa’s retail property sector remains a pillar of economic resilience—ready to lead the way in global best practices, innovation, and consumer engagement.

Conclusion: Retail Resilience & Innovation Drive Growth

The outlook for 2025 is positive, driven by lower interest rates, reduced loadshedding, and stable consumer spending. Key trends shaping the sector include:

• Black Friday evolving into a week-long event, boosting seasonal sales.
• Retailers prioritising experiential shopping and store refurbishments to enhance sales.
• Smaller shopping centres emerging as key growth drivers, reflecting shifting consumer preferences.
• Social impact retail gaining momentum, attracting investment into underserved communities.

With Clur Connect now offering a dedicated platform to showcase South Africa’s retail excellence, the industry is well-positioned to reinforce its global leadership while continuing to evolve in response to economic and consumer shifts.

“South Africa’s retail sector is resilient, innovative, and forward-thinking. We must embrace this strength to drive future growth.”— Belinda Clur, Managing Director, Clur International

VIEW FIRST EDITION OF CLUR CONNECT