Sales of tech devices under pressure

Consumers are holding on to their smartphones, televisions and household appliances for longer, putting the brakes on the country’s tech and durables (T&D) market as households prioritise essential spending.

The T&D market contracted sharply in the first half of 2026, with unit sales falling 2.6% year on year and sales value declining 5.8%, according to NielsenIQ South Africa’s State of the Retail Nation analysis.

Telecoms, the largest category in the market, was the only major T&D segment to record value growth, increasing 1.1%. But unit sales fell 7.9%, while average selling prices increased 9.8%.

“Slower discretionary spending took its toll on the T&D sector in the first half,” said Zak Haeri, MD of NielsenIQ South Africa.

“Consumers will invest in new products when purchases solve immediate practical needs, improve efficiency or offer strong value for money.”

Demand in smartphones proved more resilient than in many other discretionary categories, with growth in both prepaid and postpaid smartphone value suggesting that some consumers are still prepared to trade up.

Information technology was weaker, with sales value falling 10.7%, while units declined 2.3%. Average selling prices dropped 8.6%, reflecting increased competition and promotional activity as consumers delayed upgrades.

“Growing competition from emerging Chinese brands has also introduced more pricing pressure in key segments of the appliance and consumer technology markets. Consumers will invest in new products when purchases solve immediate practical needs, improve efficiency or offer strong value for money,” said Haeri.

The major domestic appliances market was relatively resilient, with value declining only 0.5% despite unit sales increasing 2.1%. Small domestic appliances were far weaker, with value falling 9.5% and units dropping 5.7%. Demand shifted away from lifestyle and convenience purchases, while panel televisions showed a similar value squeeze with unit sales up 4.5%, but market value fell 6.6% as average selling prices declined 10.7%.

The office machines market remained under structural pressure, with value declining 9.7% and unit sales falling 6.2%.

“In the IT and smartphone segments, consumers appear to be postponing upgrades rather than rejecting technology altogether. Purchases still happen when the benefit is visible and practical,” says Haeri. “The strongest purchase trigger is capable specifications, practical features and affordability in one package.”

The weakness in T&D contrasts with the resilience of the fast-moving consumer goods (FMCG) market.

South Africans spent R347.7bn on FMCG products through traditional and modern trade channels during the first half, with sales value rising 5.5% and unit sales increasing 7.7%.

Traditional trade — including independent stores, spaza shops and taverns — was a particularly strong performer, with sales increasing 13.7% to R85.4bn.

Modern trade channels, including online retailers, franchised stores and outlets which are part of a retail chain, remained dominant at R257.1bn, though sales growth was slower at 3.7%.

Food sales rose 4.7% in value to R125.2bn, while beverages were particularly strong, with volumes increasing 8.8% and value rising 8.3% to R49.6bn. Snacking sales increased 7.4% to R25.8bn, with units jumping 15.6%.

Price is playing a bigger role in purchasing decisions, with a growing proportion of FMCG sales taking place on promotion.

Haeri said, “The theme of the first half of the year was a consumer who continued to become more cautious and cost-conscious. In the FMCG space, manufacturers and retailers face the challenge of using promotions strategically without conditioning consumers to wait for discounts before buying.”