Exclusive | 2025 Township CX Report: 3 critical shifts for brands and retailers
While conventional marketing wisdom suggests that brand loyalty runs deep, the fifth annual Township CX Report, produced by Rogerwilco with Field & Insights Africa and MoyaApp, shows a different picture.
17 Sep 2025
The 2025 Township CX Report reveals how township consumers are changing shopping habits that challenge conventional marketing wisdom (Image supplied) (Source: © Unsplash Unsplash
In South African townships, economic necessity trumps sentiment, forcing households to optimise every rand, which is rewriting the rules of retail engagement.
Food inflation reached a 15-month high of 5.1% in June 2025 according to StatsSA, and the Household Affordability Index recorded a basic 44-item food basket at R5,443.12, a 3.6% year-on-year increase.
Against this backdrop, 39% of township shoppers switch brands when prices rise, with the highest concentration (44%) among households spending between R1,001 and R2,000 monthly on groceries.
This isn't disloyalty; it's survival economics.
The Supermarket Surge
The data shows a parallel trend of increased supermarket adoption.
Of those who switch brands due to price pressures, 50% have also increased their supermarket shopping over the past year.
This dual behaviour of brand switching coupled with venue switching suggests a fundamental shift in shopping strategy rather than random price chasing.
The numbers paint a clear picture: 54% of respondents have increased their supermarket visits in the past 12 months, while 21% actively change stores when prices rise.
This trend reveals the ongoing search for access to better deals, bulk buying opportunities and promotional offers that spaza shops often cannot match.
Yet the story isn't simply one of supermarket dominance.
Remarkably, 29% of respondents have increased their spaza shopping over the same period.
This apparent contradiction makes sense when viewed through the lens of strategic shopping, where supermarkets are for bulk purchases and major savings, spazas for daily convenience and top-up shopping.
The Trust Dividend
The government's spaza registration drive, which ran from November 2024 to February 2025, appears to have paid unexpected dividends.
Some 41% of township residents now report trusting spazas more following registration, while 49% express preference for traditional spazas run by familiar store owners.
For brands, this represents both opportunity and obligation.
The majority (70%) of those who increased spaza spend rely on Facebook and WhatsApp for promotional information, signaling a digitally engaged consumer base ready for targeted communication.
Yet the same consumers are dealing with high unemployment rates in their communities amid other socio-economic challenges, which provides context that demands authentic engagement rather than extractive marketing.
Beyond price: The quality-value equation
While price dominates decision-making, township shoppers aren't simply chasing the cheapest options.
Among those who change stores based on price increases, 25% consider how price relates to quality, location, and promotions.
Crucially, 13% actively avoid products they perceive as poor quality, regardless of cost.
This sophisticated approach to value assessment challenges brands to articulate their worth beyond basic functionality.
The eight percent of store switchers who are unemployed and another 8% from households with monthly earnings of R1,000-R4,000, are making calculated decisions about quality thresholds, travel costs and real promotional value.
3 Strategic Implications
The Township CX Report suggests three critical shifts for brands and retailers.
- Loyalty must be earned continuously, not assumed
The 39% brand switching rate indicates that familiarity alone cannot command premium pricing in economically constrained markets.
Brands need to consistently demonstrate value through appropriate pack sizes, meaningful promotions, and community presence during challenging times.
- Omnichannel strategies must acknowledge shopping behaviour
The simultaneous growth in both supermarket and spaza shopping suggests consumers are optimising across multiple channels rather than consolidating. Brands need presence and appropriate positioning across this ecosystem.
- Trust and community connection offer competitive advantages that pure price competition cannot match
The renewed confidence in registered spazas and preference for familiar store owners indicate that relationships still matter, but they need to deliver tangible value, not just emotional connection.
The township shopper emerging from this data is neither disloyal nor purely price-driven, but rather a sophisticated consumer making rational decisions within constrained circumstances.,/li>
For brands willing to meet these consumers where they are with appropriate value propositions, genuine community engagement, and respect for their economic realities, the opportunity remains substantial.
Those that don't risk discovering that in townships, loyalty is no longer given, but a reward for brands that truly serve their customers' needs.
Township CX Report
The fifth annual Township CX Report will be launched on Wednesday, 1 October 2025, in a free webinar. Bizcommunity is a launch media partner to Rogerwilco and the Township CX Report. Follow Rogerwilco on LinkedIn and Bizcommunity for updates and join to understand the findings in depth, and hear directly from industry leaders on how to navigate the changing township economy.
About Mongezi Mtati
brand strategist at Rogerwilco
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