Retailers React to Consumer’s Shift in Spending

Retailers React to Consumer’s Shift in Spending

Pick n Pay has met the shift in consumer behaviour and the trend in ‘cocooning’ by innovating and expanding its convenience and ready-made meals range in 2018, offering quality convenience foods to entertain and dine at home with family and friends. This is supported by a recent poll by Business Tech, which revealed that of 6,022 middle-to-income South African earners surveyed, 31% said they’d be most willing to cut their spending on eating out and entertainment in 2018 to save money. It seems that all the research points to the fact that, no what matter what their income, South African shoppers are watching their budgets.

 

According to researcher Rachel Thomson of GFK South Africa, with economic conditions tightening and consumer confidence falling, protecting the family has become a top value for South Africans and has translated into changes in consumer spending.  Political uncertainty, crime and lawlessness and fear for the future are pushing consumers to entertaining at home rather than heading for the malls and nightclubs. Going back to basics and putting experiences above possessions seems to be the trend and today’s consumer is not easily swept up by hype. They are demanding transparency and authenticity whilst becoming less loyal to brands as they seek out the best prices. According to GfK South Africa’s research (www.gfk.com), convenience is setting a new pace for the customer experience with consumers expecting products and services to be available when they want them, any time, any location and on any device.

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