In February sales fell by 1.5% year-on-year. Expectations were that the figure would have improved by 0.6 and 0.2% year-on-year.
Stats SA said that seasonally adjusted sales for the first quarter of the year showed an increase of 3.5% compared to the fourth quarter of 2009, while sales at constant 2008 prices for the first quarter of the year decreased by 0.6% compared to the first quarter of 2009.
The contributors to the 0.6% decrease were due to all other retailers, retailers in hardware, paint and glass.
"Today's data indicate that the retail environment has turned the corner from the 13 consecutive months of declines. The optimistic perceptions of consumers and businesses are beginning to make a mark, but cautionary tones over current conditions still prevail as the degearing process gains traction.
"A full recovery in retail sales will depend on the rate at which households' financial positions improve and with a more solid increase in overall confidence to higher levels. The build-up to the soccer World Cup may provide the injection retailers need as confidence is boosted in general and supported by low interest rates through to next year," said Standard Bank economist Shireen Darmalingam.
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