South African shoppers are spending less, but are still stretching their wallets, according to Tiger Brand’s interim report for the six months ending March 2019.<\/p>\n
Tiger Brands, which carries brands including Koo canned foods, All Gold, and Tastic rice, said that revenue from continuing operations fell 2% to R15.4 billion in the interim period.<\/p>\n
Group operating income declined 24% to R1.5 billion, while headline earnings per share (HEPS) from continuing operations was down 12% to 762 cents, from 868 cents.<\/p>\n
The group declared an interim dividend of 321 cents per share, down 15% due to recent changes in the group\u2019s dividend policy. It also declared a special dividend of 306 cents per share.<\/p>\n
In its report, Tiger Brands highlighted data from Nielsen shopping surveys showing that South Africans spend around R11,650 on groceries annually – a 10% decline compared to July 2018.<\/p>\n
This spend is spread out across 60 shopping trips a year, with the average basket value being R194 – R15 less than in July 2018<\/strong>.<\/p>\n The report cites Eskom as a growing concern due to its destabilising fiscal position, exchange rate volatility and the fact that disposable income has been impacted by electricity and fuel inflation.<\/p>\n How South Africans are shopping<\/strong><\/p>\n The report also shows that South Africans are increasingly shopping on promotion, with 40% of respondents stating that they read newspaper broadsheets for specials, while 65% said that they actively compare prices across brands.<\/p>\n This has lead to changes in what South Africans are buying, Tiger Brands said.<\/p>\n It found that that South Africans are spending more on:<\/p>\n In comparison, it found that South Africans are spending less on:<\/p>\n\n