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Consumers shop in bulk to beat shrinkflation
South African consumers may be getting less bang for their buck as shrinkflation takes hold, with fewer items in their shopping baskets despite paying the same prices.
Image by Manfred Richter from Pixabay
This phenomenon, where prices remain steady, but the quantity or quality of products decreases, has been felt globally. A University of Birmingham Business School found that 70% of British consumers noticed shrinkflation in products like chocolate, chips, biscuits, and snack bars.
Finding value in a shrinkflation economy
The impact of shrinkflation on consumer wallets is evident in South Africa with consumers unstable levels of debt, but some retailers are finding ways to offer value to their customers.
According to Makro's recent research, conducted in July, most customers purchased at least 20 items for a basket of R1,000, with a focus on essential items like snacks, pantry staples, and cleaning supplies.
From this, the retailer concludes that consumers are shopping for household essentials and snacks in bigger packs, to save on these items overall.
The baskets in question typically include items such as:
- Chips and other Savory snacks
- Biscuits and baked goods
- Noodles and other pantry staples
- Dishwashing liquid and cleaning supplies
- Snack bars and other treats
Interestingly, this research was conducted over the cold front weekend, which coincided with "Mampara week" - the last week of the month before payday, when shoppers tend to stock up on essentials to make it through to their next salary.
This highlights another key trend, where customers are seeking value to help them navigate financially challenging times.
A closer look at the shopping baskets reveals some interesting trends. Many customers are purchasing a mix of essentials like dishwashing liquid, pantry, along with an occasional treat.
Notably, even when buying bigger-ticket items like an appliance, shoppers often add a snack to their basket.
"This trend shows that our customers are seeking convenience and value in their shopping experience. They're prioritising essentials, but still making room for an occasional treat for their family and, at Makro, we’re committed to helping them achieve that balance,” says Katherine Madley, vice president of group marketing at Massmart.
