Lockdown continues in South Africa, but a potential drop from Level 4 is in sight
- The shift into mid May has shown some changes in shopping behaviour. Growth across pantry staples has slowed, however consumers are still indulging in treats. Sanitisers and Soap remain a consistent priority
– Growth of baking-related categories show consumers continue to bake to pass the time, provide entertainment and cheaper food/snack options
– Cooking fatigue is leading higher LSM groups to purchase convenient meal options and frozen foods
– Colder weather inspires winter purchases of hot chocolate, hot water bottles and kettles
– Hair and beauty appliances are growing as consumers seek alternative solutions in the absence of salons
- IRI observed 9% Grocery growth over the lockdown period to date, however SA consumers anticipate lower spending in all categories except Grocery and in-home entertainment
- Businesses continue to report drops in turnover, while retrenchments & decreased working hours occur across sectors
- The lifting of online shopping restrictions provides an opportunity to retailers and manufacturers to expand their online offering to capitalize on categories that are not available in store using targeted communication to shoppers
- Online liquor sales provide some revenue to the otherwise restricted alcohol industry while allowing cautious consumers to avoid overcrowding and queues when the ban is lifted
- Cigarettes and tobacco remain an ongoing source of contention with studies showing that only 10% of smokers are adhering to the ban and illicit trade soaring
Google mobility data reveals more time in parks and malls following the easing of restrictions. Cabin-fevered consumers are taking advantage of the few opportunities to be out of home
