South Africa Grocery Shopper Report: Understanding SA’s evolving shoppers

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South African shoppers are not what they used to be. They’re tougher, savvier, and more in tune with what they are looking for. A combination of Covid and the ensuing supply chain crunch loosened the bonds of loyalty between shoppers and the retail and product brands they favoured.

Now, in a difficult economic environment, this bond has been further weakened as shoppers switch brands and retailers based on where value may be found – either in brick-and-mortar retail or in the burgeoning online space.

However, how shoppers define value is by no means settled science. “When we ask shoppers what ‘value’ means to them, the answer is not ‘cheapest prices’ or even ‘special offers and promotions’,” says Nicola Allen of Trade Intelligence.

“It is ‘good quality at a reasonable price’. This reinforces the concept that price can never be fully divorced from quality.”

This balance between the price and quality of an offer is essential for both brands and retailers to understand, because it differs significantly across shopper segments, and even within categories for a single shopper.

“The good news for retailers is that there is still a fair amount of trust vested in the retail landscape,” says Allen. A recent survey by Trade Intelligence found that 36% of shoppers say they ten out of ten trust that retailers are doing their best to bring shoppers value.

A further 24% give a score of eight or nine, totalling 50% of shoppers who have strong trust in retailers.

However, while shoppers may have a store where they shop most often, they are shopping around. Sixty-two percent have a repertoire of four or more grocery stores. And while they say that loyalty programmes make them more loyal to a store, their behaviour indicates otherwise.

To complicate things further, a new generation is entering the grocery shopping sector – Gen Z. These 27-and-unders are more educated than older cohorts, more demanding, and more reliant on technology and digital channels and diverse information sources, from word of mouth to TikTok.

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What does this mean for brands deciding how to market their products, where to invest their point-of-sale budgets, or which buyer to call on this week? The shift in shopper loyalty indicates that there is a larger shift in the balance of power between shoppers, retailers and brands, and that historic knowledge of shopper behaviour no longer applies.

As a result, brands will need to invest in research that reveals the nuances, opportunities and pitfalls of a more complicated shopper landscape.

And while resources exist that provide a broad overview of the trends and influences at play, these need to be supplemented by research that reveals the interplay between a particular brand, the retail landscape, and the target market.

“In a fragmented shopper landscape there’s no longer a one-size-fits-all approach,” says Allen. “That said, it is essential that research solutions for individual brands are underpinned by a solid base of industry insights and intelligence.”

At Trade Intelligence, this base can be found in the inaugural SA Grocery Shopper Report, published in June, which provides detailed comparisons of shopper profiles and behaviours across various segments, such as income and generation, based on MAPS data and the shopper survey mentioned above.

Trade Intelligence also provides customised research for brands wishing to understand the needs of their own shoppers in greater detail.
Methodologies are customised for each project and include quantitative and qualitative research like online and in-person surveys, in-depth interviews on specific topics, trade visits, ‘shop-alongs’ and more.

“This gives us a 360° view of the shopper,” says Allen. “But more importantly, it allows us to understand the interaction between shopper and retailer, shopper and brand, and the interplay of all three. It enables brands to answer specific questions and tackle specific problem areas in their interactions with shoppers.”

The bespoke research offering also allows brands to explore their more channel or category-specific concerns – for example, how pricing strategies impact shoppers’ choices.

“Things have changed at the point of purchase, and they’ll continue to change,” concludes Allen. “Shoppers are tougher and more informed, and it’s the retailers and brands who actively seek to understand them that will still be here and thriving in five years’ time.”

Download the South Africa Grocery Shopper Report here.