Presented by NielsenIQ

How inflation has impacted shopper behaviour in the post pandemic era

 ·5 Aug 2022

While the effects of COVID-19 continue to soften across the globe, the rise in inflation appears to cause severe concern amongst many shoppers.

NielsenIQ’s Shopper Trends report reveals insights on how shoppers in South Africa have been impacted by inflation and how they are adjusting to the new retail landscape.

The report is based on the findings of a study involving more than 2,500 shoppers (grocery buyers and influencers) from the rural and urban parts of South Africa.

According to the report, a notable proportion of respondents have become cautious about their daily spending, especially when it comes to grocery shopping.

Shift in shopper priorities & preferences

Out of 2500+ respondents who visited supermarkets, hypermarkets, convenience stores, personal care or online stores, 82% of respondents noticed an increase in their grocery bills from that of last year.

The sudden spike in prices prompted many shoppers to become price-conscious and reduce their basket size.

Many shoppers today are purchasing smaller quantities of products at lower price points or picking up the same products from lower priced stores to cope with the volatility in prices.

In-store visits yet to recover to pre-pandemic times

Convenience, value for money and availability of products continue to be the main drivers for in-store shopping visits.

However, the ongoing demand for omnichannel shopping has pushed many shoppers to weigh their in-store visit options.

As per the report, on an average, shoppers visit 2.4 stores in a month.

In fact, this has impacted many large format stores, which continue to recover from lower footfall when compared to pre-pandemic times.

In terms of store selection, Shoprite continues to dominate the retail marketplace with increased visitation in 2021.

Proclivity for purchasing private label products

Having reduced the appetite for discretionary spending and experimentation, many shoppers are patronizing private label products, which are either priced lower than regular products or are mostly on promotion.

Support for sustainable & eco-friendly products

Besides affordability, shoppers today are selecting products/brands based on two parameters- 1) whether the products were ethically sourced and 2) whether the brand aligns with sustainability practices.

This trend is being well leveraged by brands today as they seek to increase their engagement and interaction with shoppers.

Finding work-life balance through online shopping

To make the most of their free time/me time many digitally- savvy shoppers are resorting to shopping online for regular pantry stock ups and meal preparation missions.

As inflationary pressures continue to mount on shopper wallets, retailers and manufacturers need to determine how best to engage with the price conscious and promo seeking shoppers.

To learn more about the prevailing price volatility and how best to navigate through the disruption, please contact your NielsenIQ representative at [email protected]

About Shopper Trends:

NielsenIQ’s Shopper Trends is an annually syndicated report that provides a comprehensive overview of emerging trends in the grocery and retail space.

With the Shopper Trends report, manufacturers and retailers can better their understanding about brand equity and gain deeper insight on evolving behaviour, attitude, and patterns of shoppers across the globe.

For further details, visit Syndicated Studies & Research: Shopper Trends 2022 – NielsenIQ.

About NielsenIQ

NielsenIQ is the leader in providing the most complete, unbiased view of consumer behaviour, globally.

Powered by a ground-breaking consumer data platform and fuelled by rich analytic capabilities, NielsenIQ enables bold, confident decision-making for the world’s leading consumer goods companies and retailers.

Using comprehensive data sets and measuring all transactions equally, NielsenIQ gives clients a forward-looking view into consumer behaviour to optimize performance across all retail platforms.

Our open philosophy on data integration enables the most influential consumer data sets on the planet. NielsenIQ delivers the complete truth.

NielsenIQ, an Advent International portfolio company, has operations in nearly 100 markets, covering more than 90% of the world’s population.

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