Consumers changing their shopping habits to save money

CONSUMERS now want more flexibility in how they shop, they value locally sourced products, and they are willing to share their data for loyalty programmes if they can access greater discounts.

This is according to PwC’s latest Global Consumer Insights Survey, which showed that 72% of South Africans are extremely or very concerned about their personal financial situation – the second-highest proportion of consumers globally who feel this way.

Amid elevated inflation and rising interest rates, a constrained economy and rolling blackouts, it is safe to say that the purse strings of millions of South Africans have been tight for quite some time.

Anton Hugo, PwC Africa retail industry leader says: “As record levels of load-shedding, rising inflation, and a poor job market continue to hamstring the local economy, many consumers are holding back on non-essential spending, with some stopping all non-essential spending altogether.”

The report shows that consumers who identified as “most concerned” are significantly more likely to change their shopping and lifestyle behaviours.

These include a decrease in spending across all retail categories in the next six months; they are significantly less likely to be planning travel in the first half of 2023; they are significantly more likely to delay purchases until items are on promotion; and they buy in bulk to save over time.

“These consumer behaviour changes are likely to exert additional pressure on retailers who are already grappling with constrained margins,” Hugo says.

A significantly larger proportion of consumers are also planning to reduce their spending across retail categories, with the greatest decrease forecast in fashion, and health and beauty.

“Homeware categories, sport, home entertainment and virtual online activities are also expected to take a knock,” he says.
“The only category that is more likely to not see a decrease in spend is groceries, but this is probably driven by consumers’ expectation of the rising cost of living driven by inflation.”

Despite overall reduced spending among consumers, 85% are still willing to pay more than the average price for products produced or sourced locally, made from recycled, sustainable or eco-friendly materials (83%), and produced by a company with a reputation for ethical practices. – IOL News

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