JOHANNESBURG (Reuters) – About 40% of South African consumers are shopping more often at discount stores, while 48% think private-label products are a good alternative to name brands, data from market researchers NIQ showed on Thursday, as customers adjust to soaring prices.
August food prices are up 8.2% over the last year, outpacing the broader inflation rate across the whole economy and adding strain to household budgets already stretched by high transport bills and other price increases.
To survive the cost of living crisis, 99% of shoppers have changed the way they shop for fast-moving consumer goods, with 34% buying whatever brand is on promotion and 46% focusing on essentials, the data showed.
“In the upcoming year, we can expect a sustained and intensified emphasis on budgeting, value, and trade-offs,” NIQ South Africa Managing Director Zak Haeri said.
NIQ’s Mid-year Consumer Outlook 2023 also highlighted the staying power of private-label products – also known as “store brands” – as many consumers are managing costs by turning to these brands.
Food producers and retailers are seeing significant sales volumes of their value-tiered and own-label products, with plans to bring more to the market.
(Reporting by Nqobile Dludla; Editing by Jan Harvey)