SA shoppers are cutting back on all non-essential spending, says PwC

The report shows that shoppers who identified as ‘most concerned’ are significantly more likely to change their shopping and lifestyle behaviours. These will include: 

• A decrease in spend across all retail categories in the next six months.
• Significantly less likely to be planning travel in the first half of 2023.
• Significantly more likely to delay purchases until the items are on promotion.
• Buy in bulk to save over time.

Shopping trends and future expenditure 

Almost all (99%) of South African shoppers are planning to adopt behaviours that will help them save money over the next six months. “These consumer behaviour changes are likely to exert additional pressure on retailers who are already grappling with constrained margins,” Hugo observes.

A significantly larger proportion of consumers are also planning to reduce their spending across retail categories, with the greatest decrease forecast in fashion, as well as health and beauty.

“Homeware categories, sports, home entertainment and virtual online activities are also expected to take a knock,” Hugo says. “The only category that is more likely to not see a decrease in spend is groceries, however this is probably driven by consumers’ expectation of the rising cost of living driven by inflation.” 

Despite overall reduced spending among consumers, 85% are still willing to pay more than the average price for products that are produced or sourced locally, made from recycled, sustainable or eco-friendly materials (83%), and produced by a company with a reputation for ethical practices. 

Shopping channel trends

As technology continues to evolve, SA shoppers are increasingly drawn to digital features that can enhance their in-store shopping. This indicates a desire for a more holistic shopping experience that leverages the best of both worlds.

 “Looking ahead, we can expect to see a shift in the shopping habits of South African consumers. Fifty-seven percent say they anticipate an increase in the use of online channels, with 59% expecting retailers to offer efficient delivery or collection services,” says Suleman Jhavary, PwC South Africa Operations Transformation Leader.

“However, when it comes to shopping in physical stores, most expect their behaviour will remain unchanged over the next six months.

“This represents a significant change in outlook compared to previous surveys, where 47% of consumers expressed a desire to reduce their in-store shopping.” 

You can download the full survey here.