TFG accelerates shift to online sales in Africa amid store closures

Despite a forecast predicting that the South African online retail market will reach 159 billion rand in 2026, most adults in the country still do not make purchases online. The report 'Online Retail in South Africa 2026,' prepared by World Wide Worx in collaboration with Mastercard, Peach Payments, and Ask Afrika, forecasts an annual growth of approximately 22.5%, with online sales expected to account for 10% of total retail turnover throughout the year.

However, consumer research underpinning this report, based on 23,910 surveys conducted in 2025, showed that 79.1% of adults in South Africa use the internet, but only 34.2% make online purchases. Ahead of Black Friday, the digital innovation agency and product consulting firm Specno warns that retailers may compete for the same customers while ignoring the barriers preventing millions of others from making their first purchase.

Joshua Harvey, CEO of Specno, believes this gap must change retailers' approach before November begins. He notes: 'The growing online market may hide how many people are still outside of it.' In his view, sellers should ask themselves whether they are making it easier for anyone to make a first online purchase, or simply offering more discounts to those who already know how to use the function.

The report identified several obstacles to wider participation, including delivery costs, minimum order requirements, unreliable delivery outside major urban centers, payment issues, data costs, and limited support in local languages.

Harvey emphasizes that a new buyer should not have to reach the final screen to find out if delivery is available in their area or what the cost is. Furthermore, if a payment fails, they need a clear answer: whether the transaction went through, if funds were debited, and what to do next. This moment can determine whether the customer trusts and continues the interaction or tries again.

Practical improvements include proactive checking of delivery availability, displaying costs before checkout, explaining payment steps in simple language, and ensuring easy access to help. Where possible, a guest checkout feature can eliminate the need to create an account, which often deters new buyers.

Harvey advises that if retailers aim to make their online sales accessible to millions of new customers across the country, they should test their purchasing journey on basic smartphones using mobile data and intermittent connections before considering increasing spending on campaigns for existing online shoppers. This involves checking whether large images slow down loading, whether promotional pop-ups obscure important information, how complex the forms are to fill out, and whether a connection drop forces the process to start over.

The consulting firm also recommends saving cart contents upon connection loss and providing a reliable way to check order status before retrying payment. Retailers should also analyze at which stage customers abandon the process on different devices and under various connection conditions, and then find out the reasons from users.

The study also questions the assumption that an app should be a priority for every retailer: in 42 out of 48 studied categories, browsers were used more than apps for shopping. Harvey asserts: 'Investments must follow the frequency and nature of customer needs. An app can provide significant convenience to someone who shops regularly, whereas a casual buyer may just need a fast mobile website.'

Harvey believes that Black Friday's effectiveness should also be assessed after the advertising traffic subsides. Accurate delivery promises, useful tracking, accessible support, and clear return procedures determine whether a new buyer returns. Retailers should track how many new customers successfully complete their orders, what support they required, and whether they will make repeat purchases in subsequent months. These metrics can show whether acquisition costs are creating long-term customer relationships.

He concludes: 'Black Friday can attract attention and secure the first sale. The experience that follows determines whether you have earned the customer.' If a package is delayed, tracking is useless and no one answers the query; the discount becomes the least memorable part of the purchase.

For South African retailers, expanding online participation starts with understanding the people whom current purchasing processes do not serve: 'Your next customer may already be online, already know your brand, and already want what you sell. The opportunity lies in removing what prevents them from buying and giving them a reason to return when the discount ends.'

Residents of South Africa are increasingly preferring the screens of their mobile devices over traditional forms of leisure. Thanks to the expanded use of smartphones and high-speed internet, watching local television programs, participating in sports competitions, and exploring virtual spaces have become key elements of daily recreation.

There is no longer a need to visit physical venues for gaming or media consumption. Digital access, available during daily commutes or from home, has lowered the barrier to entry, attracting wider segments of the population into active online communities.

Nostalgia Meets Modern Technology

Developers are successfully combining modern graphics with familiar themes to engage a diverse audience. Classic concepts previously found in arcades are finding new life on mobile screens. Retro games, characterized by bright colors, simple mechanics, and captivating soundtracks, are ideal for quick content consumption.

Operators in the region are expanding their offerings, targeting players who enjoy sports betting alongside digital casinos. Mobile integration allows these features to be delivered directly to users, offering a blend of nostalgia and modern capabilities when playing Hot Hot Fruits Virgin Bet on smartphones.

Infrastructure Improvement Fuels the Boom

Ongoing modernization of telecommunications infrastructure is directly contributing to the growth of the digital entertainment sector. Mobile network operators have deployed LTE and early versions of 5G in urban centers and suburban areas, ensuring users experience no irritating delays or buffering when using data-intensive applications.

The availability of cheaper data packages and competitive prices for smart devices has also broadened internet access. This improved connectivity prompts developers to optimize their software, ensuring smooth operation of games and streaming services even on budget smartphones. In South Africa, the mobile-first approach is particularly effective, as mobile internet usage remains more prevalent than wired broadband access.

The Social Aspect of Digital Gaming

Many applications now include social features that allow users to share achievements, compete on leaderboards, and communicate in real time. This integration transforms individual gaming into shared digital events.

Gamers in South Africa often create online groups and participate in local tournaments, forming a subculture centered around digital leisure. Developers recognize this community drive and integrate social interaction tools directly into interfaces. These features enhance the user experience and promote organic growth as players invite friends to join them.

Regulation and Consumer Protection

Regulatory frameworks are adapting to the rapid development of digital betting and gaming. South African authorities have implemented strict licensing requirements to ensure a fair and safe environment, covering data protection protocols and transparent payout mechanisms.

Licensed operators are obliged to adhere to rules that protect user information and promote fair play, giving consumers confidence in safe participation. Responsible gaming initiatives are also mandatory, requiring operators to provide tools for effective management of screen time and spending.

The Digital Horizon of South Africa

South African consumers can expect increasingly immersive experiences as technology advances. Innovations in augmented reality and cloud gaming are entering the mainstream market, further blurring the lines between physical and virtual play.

The combination of affordable hardware, reliable internet, and engaging content provides entertainment deeply rooted in familiar traditions. As developers and operators continue to focus on the unique needs of the South African audience, the digital leisure sector is poised for prosperity.

Responsible Gaming Notice

Participation in betting and casino activities is intended for adults only. It is crucial to approach these entertainment options responsibly. If you or someone you know is experiencing gambling problems, help is available. Please contact the South African Gaming Responsibility Fund for free and confidential support.

While families in villages are trying to balance income and expenses, the pace of wage growth has slowed down. However, this slowdown has not significantly affected Generation Z. Young people are changing their purchasing habits, continuing to add desired items to their cart even amid growing financial difficulties. Now, in addition to essential goods, Gen Z is purchasing snacks, skincare products, and health supplements.

These changes in purchasing trends among Gen Z and residents of small towns were identified in the recent Rural Barometer 2026 report. According to this report, in June 2026, about 14% of rural residents reported that their family's monthly income increased over the last six months, compared to 29% in 2025. This indicates a slowdown in income growth rates in small towns and suggests that people have become more cautious with money, paying close attention to every small and large expense.

Nevertheless, young residents of rural areas aged 18 to 29 make purchases in an average of 19.1 different product categories monthly, compared to 17 categories in February 2025. This points to the inclusion of new items in Gen Z's consumer portfolio.

The report shows a 27% increase in spending on packaged snacks and instant food among rural Gen Z, as well as a 36% increase in purchases of health and self-care products. Purchases related to personal hygiene also rose by 9%. Abhishek Singh, Senior Vice President and Head of Rural, Social, and Health Media Solutions at WPP Media India, noted that demand for items such as ready-made snacks, packaged food, facial foams, and hand soap is growing among youth and women. He also emphasized that financial pressure has impacted Generation Z.

Social media also influences the purchasing behavior of youth in villages. According to the report, 40.9% of Gen Z follow online influencers, and 60.4% of young people use at least one AI-related feature. One in four young people uses content creators' and online video advice from applications like ChatGPT and Gemini to find new products. Nevertheless, this does not mean that young people are spending money thoughtlessly.

Overall, despite economic pressures in rural areas, Gen Z preferences are changing. Now, purchases are important not only based on needs but also on personal preferences and self-care.