NIQ retail spend barometer reflects S.Africa’s mixed consumer sentiment

South African shoppers have shown resilience in their spending habits, with a recent report indicating a 4.8% rise in consumer spending on fast-moving consumer goods (FMCG) in the second quarter of the year. The NIQ Retail Spend Barometer revealed that shoppers spent a total of R181 billion on essential categories such as food, personal care, and household items. This increase compared to the same period last year suggests a positive trend in consumer sentiment. However, the tech and durables market, encompassing products like consumer electronics and appliances, remained relatively unchanged from the previous year. The findings were shared by Nikki Quinn, Retail Lead for Sub-Saharan Africa at NIQ and GfK, during a recent interview on CNBC Africa. Quinn highlighted the role of factors such as reduced load shedding and higher prices influencing consumer behavior. Despite the challenges, South African consumers have shown adaptability in managing their finances by seeking out discounts, switching to more affordable brands, and prioritizing essential purchases. The report also indicated a shift towards larger screen televisions, likely driven by increased time spent at home and major sporting events during the quarter. While the overall tech and durables market saw flat growth, certain categories such as major appliances and air fryers experienced notable increases in demand. Quinn emphasized that the normalization of market growth post-pandemic boom years could be contributing to the current steady performance in the sector. Looking ahead, Quinn expressed optimism for potential growth in the tech and durables sector, pointing to factors like anticipated interest rate cuts, the impact of a two-part retirement funding system, and upcoming promotional activities like Black Friday and the festive season. These developments are expected to boost consumer confidence and drive household expenditure in the latter part of the year. The long-standing history of conducting consumer spending surveys in South Africa by NIQ and GfK underscores the depth of insight provided by the data. With over 40 years of combined survey experience, the organizations offer a comprehensive view of consumer trends and market dynamics in the region. As consumers navigate economic challenges and changing spending patterns, the data from the Retail Spend Barometer serves as a valuable tool for retailers and industry stakeholders to understand and adapt to evolving consumer preferences.