CUSTOMER EXPERIENCE

How ‘survival economics’ are redefining loyalty in SA’s townships

By our African Marketing Confederation News Team | 2025

Study reveals the choices households are making between supermarkets and spaza’ shops, and how trust and value shape decisions.

Brand loyalty in South Africa’s townships is being rewritten by survival economics, where necessity trumps sentiment and households are forced to prioritise value in their daily spending.

Photo: Unique Day Tours via Flickr

That’s the central finding of the ‘2025 Township Customer Experience (RX) Report’, released by digital agency Rogerwilco in partnership with Field & Insights Africa and MoyaApp. 

 

According to Stats SA, food inflation hit 5.1% in June 2025, the highest level in 15 months, while the Household Affordability Index placed the cost of a basic 44-item basket at 3.6% up from a year earlier.  

 

These rising costs are leaving township households with less room to manoeuvre and forcing more deliberate choices at the till. 

 

“Conventional marketing wisdom assumes loyalty is fixed. What our research shows is that loyalty in the township context is highly rational and deeply tied to survival,” says Mongezi Mtati, Senior Brand Strategist at Rogerwilco.  

 

“When 39% of consumers switch brands due to rising prices, it’s not disloyalty, it’s a calculated move to stretch every rand (ZAR). Brands need to show up with consistent value, smarter pack sizes and meaningful community engagement if they want to remain relevant.” 

 

Now in its fifth year, the Township CX Report surveyed more than 1,600 township residents across the country’s nine provinces, providing a view of how price pressures, digital connectivity and cultural traditions are shaping the township economy.  

 

This was complemented by a MoyaApp survey of 3,820 township residents, offering further insight into how savings, insurance and banking trends reflect a survival-first reality. MoyaApp is a South African ‘super-app’ that provides a variety of services to consumers. 

 

Shoppers are optimising across both formal and informal channels 

 

The findings highlight how township shoppers are optimising across both formal and informal channels. Supermarkets are gaining traction, with 54% of respondents shopping there more often for bulk deals and promotions. At the same time, 29% have increased their spaza (informal local convenience store) purchases, reflecting the complementary role these stores play in daily convenience and top-up shopping. 

 

The government’s spaza registration drive, which ran from November 2024 to February 2025 (in the wake of an infected food scandal), appears to have paid unexpected dividends. Trust is on the rise, with 41% of residents reporting greater confidence in spazas after the process, while 49% favour shops run by familiar store owners.  

 

This renewed trust strengthens spazas’ position as neighbourhood hubs, even as supermarkets capture bulk spending, according to the research team. 

 

Together, these trends reveal that township shoppers are not simply shifting loyalty from one channel to another; they are strategically balancing both, using supermarkets for bigger savings and spazas for trusted, everyday access. 

 

While price remains the strongest driver of decision-making, township shoppers are not simply chasing the cheapest options. Among those who change stores when prices rise, 25% weigh price against quality, location and promotions, while 13% actively avoid products they view as poor quality, regardless of cost. 

 

This reflects a sophisticated approach to value, where consumers balance affordability with standards of trust and quality.  

 

“For brands, the lesson is clear: loyalty cannot be won on price alone. Township consumers are shopping across multiple channels, supermarkets for bulk savings and spazas for everyday convenience, which means brands must be visible across this ecosystem,” the research team states. 

 

“Consistent value, not once-off promotions, is what earns trust, while articulating worth beyond basic functionality and showing authentic community connection remain decisive advantages that pure price competition cannot replicate.” 

 

You can download the full report here. 

author avatar
Jason Lottering