The South African shopper is changing. With rising living costs influencing everyday purchasing decisions, consumers are looking for more affordable options, greater convenience and experiences that feel tailored to their needs.
Image supplied.
Following insights shared at Google Marketing Live 2026, Google’s sub-Saharan African team has identified three AI-powered strategies that can help retail and Search advertisers better understand consumer behaviour, improve relevance and respond to shifting shopping habits.
1. Understanding the modern AI-powered shopper
AI usage is becoming increasingly embedded in consumers’ everyday lives, with people using these tools to make decisions, find information and discover products. For retailers, understanding how different shoppers use AI throughout the buying journey is becoming increasingly important.
Shopping behaviour also differs across generations. Millennials are more likely to use AI for practical shopping tasks, such as automated grocery or pet food refills, as well as detailed product research. Gen Z, meanwhile, is more likely to use AI for inspiration and discovery, particularly when planning events or special occasions.
Research shows that 22% of shoppers use AI to make better choices when experiencing decision fatigue, while 21% use it for personalised recommendations, such as meal inspiration and product suggestions.
For retailers, AI-powered tools can help deliver more relevant experiences by matching shoppers with the information, products and creative content most useful to them.
Prof Estelle Van Tonder & Prof Christo Bisschoff 8 Jul 2026 Helping consumers navigate the cost-of-living squeeze
Affordability continues to play a major role in South African shopping decisions. Research shows that 87% of consumers are prioritising budgeting and financial savings, making price and value increasingly important factors when choosing where to shop.
As consumers look for ways to manage household spending, retailers have an opportunity to create more relevant, budget-focused campaigns. Examples such as “Meals Under R50” or grocery solutions designed around specific budgets can help brands connect with shoppers looking for practical ways to save.
AI-powered advertising solutions can help retailers identify consumers searching for cost-saving ideas and deliver messaging that aligns with their immediate needs, creating a more useful and personalised shopping experience.
2. Building loyalty in a changing retail landscape
Consumer loyalty is also shifting, with shoppers becoming more willing to try new retailers when they find better value. Google and Ipsos research found that 54% of consumers across grocery, consumer electronics, clothing and home categories purchased from a retailer they had never shopped with before in the past month.
Price was identified as the biggest driver behind brand switching, while traditional loyalty subscriptions ranked among the least important reasons consumers choose a specific retailer.
To retain customers, retailers can use first-party data and AI to create more personalised interactions. For example, customer purchase data from loyalty programmes can help brands deliver relevant reminders, recommendations and refill options based on individual shopping patterns.
3. Using trust and personalisation to influence purchasing decisions
While value remains important, trust continues to influence consumer decisions. Nearly half of consumers (49%) agree that reviews strongly impact their final purchase decision.
Retailers can use AI-powered tools to incorporate customer reviews and other trusted information into marketing campaigns, helping shoppers feel more confident when making purchasing decisions.
As South African consumers continue to prioritise affordability, convenience and relevance, AI is providing retailers with new opportunities to better understand customers and create shopping experiences that reflect changing expectations.
