Based on insights from a NielsenIQ Consumer Insights global study Unwrapping the Holiday Outlook it’s clear that this time of year continues to hold high emotional value for consumers with the bulk remaining Christmas “enthusiasts” with no plans to change the way they celebrate.
NielsenIQ MD Ged Nooy comments: “In terms of their intentions, most consumers do not want to give up their usual traditions and are determined to spoil themselves and their loved ones. However, this year the dilemma is that despite their best intentions, consumers are also grappling with making the most of their tight budgets and have adopted tactics such as shopping early and taking advantage of special offers."
This early approach is borne out by the fact that last year, a quarter of all rands spent, were on promotions during the peak festive season shopping week ending 26 December. Significantly, this is 3% points lower than the average for the previous year, and a whopping half of that seen on Black Friday week in the previous month of November 2021.
This suggests that retailers and manufacturers pulled back significantly due to their investments in Black Friday.
Another useful gauge for current festive season sentiment is the latest NielsenIQ State of the Retail Nation review which reflects data measured over the four weeks to the end of October 2022. It shows that the total FMCG basket now measures R567 billion (12MM TY) representing 13% annual growth.
In terms of the key consumer trends that emerged during the measurement period, NielsenIQ analysis found that certain long forgotten consumer behaviours have started to resume as South Africans finally emerged from the spectre of Covid-19.
In addition to these re-emerging trends, certain lockdown-induced behaviours continue to grow. For example:
*Data source: NielsenIQ’s Market Track, the largest retail (grocery) data source in the country and the only currency used by all South Africa’s major retailers. This benchmark data comprises more than 10,000 branded retail outlets (e.g. supermarkets and garage forecourts) and more than 143,000 independent stores (e.g. spazas and taverns) across South Africa’s nine provinces and measures more than 80% of all retail grocery transactions.
**Please note that as an unbiased retail data and analysis provider NielsenIQ is subject to contractual terms which prevent it from releasing specific manufacturer and retailer data points. We also do not provide comment on specific retailer market share or performance and therefore kindly request that any content of this nature is attributed to your source of reference.