Over 86% of SA consumers worried about rising prices of everyday items, survey finds

South African consumers are feeling the pinch as prices of everyday items continue to rise, with concerns reaching new heights, according to a recent survey conducted by Deloitte Africa. Rodger George, Consulting Consumer Industry Leader at Deloitte Africa, discussed the shifting habits and sentiments of South African consumers amidst the economic challenges brought on by the COVID-19 pandemic. The survey, which covered 23 countries, revealed that South African consumers are among the most worried, with 86% expressing concerns about the increasing prices of goods and services. This worry surpasses that of consumers in other surveyed countries, highlighting the acute financial strain faced by many in South Africa. One of the key findings of the survey was the real increase in prices experienced by consumers in various categories. Grocery prices were reported to have risen by 78%, followed by clothing at 48%, restaurants at 61%, and alcohol and tobacco products at 59%. These price hikes have placed a significant burden on consumers, particularly those already struggling to make ends meet. Moreover, the survey indicated a concerning trend in consumer spending habits, with only 13% of respondents feeling they are spending less, while the majority expressed that they are under financial pressure. This financial strain poses a risk to economic growth, especially as South Africa enters the fourth quarter amid a challenging economic environment. George highlighted that many consumers are living beyond their means, with a significant portion relying on credit cards to cover expenses. The combination of rising interest rates, petrol prices, and overall price increases has created strong economic headwinds that are likely to impact consumer spending during the upcoming holiday season. Despite these financial challenges, South African consumers are displaying a growing interest in sustainable products and environmentally conscious buying patterns. The survey revealed that South African consumers are the fourth most concerned about sustainability among the 23 countries surveyed. Furthermore, 75% of respondents reported that they have paid more for sustainable products in the past month, indicating a shift towards conscious consumerism. The survey also highlighted a shift in consumer priorities, with a focus on wellness, well-being, and experiential purchases over big-ticket items. This trend was evident during recent shopping events such as Black Friday, where consumers showed a preference for smaller basket sizes and a more cautious approach to spending. As South African consumers navigate the challenges posed by price increases and financial strains, retailers and consumer manufacturers are urged to adapt their value propositions and pricing strategies to meet changing consumer preferences. The findings of the survey underscore the need for businesses to be mindful of consumer sentiment and to provide value and innovation to attract and retain customers in a challenging economic landscape.