While the effects of COVID-19 continue to soften across the globe, the rise in inflation appears to cause severe concern amongst many shoppers.<\/p>\n
NielsenIQ\u2019s 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.<\/p>\n
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.<\/p>\n
According to the report, a notable proportion of respondents have become cautious about their daily spending, especially when it comes to grocery shopping.<\/p>\n
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.<\/p>\n
The sudden spike in prices prompted many shoppers to become price-conscious and reduce their basket size.<\/p>\n
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.<\/p>\n
Convenience, value for money and availability of products continue to be the main drivers for in-store shopping visits.<\/p>\n
However, the ongoing demand for omnichannel shopping has pushed many shoppers to weigh their in-store visit options.<\/p>\n
As per the report, on an average, shoppers visit 2.4 stores in a month.<\/p>\n
In fact, this has impacted many large format stores, which continue to recover from lower footfall when compared to pre-pandemic times.<\/p>\n
In terms of store selection, Shoprite continues to dominate the retail marketplace with increased visitation in 2021.<\/p>\n
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.<\/p>\n
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.<\/p>\n
This trend is being well leveraged by brands today as they seek to increase their engagement and interaction with shoppers.<\/p>\n
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.<\/p>\n
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.<\/p>\n
To learn more about the prevailing price volatility and how best to navigate through the disruption, please contact your NielsenIQ representative at lizel.vanbiljon@nielseniq.com<\/strong><\/a><\/p>\n NielsenIQ\u2019s Shopper Trends is an annually syndicated report that provides a comprehensive overview of emerging trends in the grocery and retail space.<\/p>\n 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.<\/p>\nAbout Shopper Trends:<\/strong><\/h3>\n