Shoppers are combining a desire for good quality, price-wise items - a nuanced trend identified in the latest Nielsen 2019 Shopper Trends Report.

"Lowest prices" are no longer the key driver of store choice, the report states.

“South African shoppers have become far more savvy and critical of retail environments and despite being hyper aware of price changes, they also love quality products and demand an ‘experience-driven’ retail environment,” says Nielsen South Africa consumer insights director Kim Reddy.

"This has put a lot of pressure on retailers and manufacturers alike, to innovate and convince shoppers to choose their stores and products over others."

The study also found that shoppers were less averse to considering purchasing luxury items.

Asked which answer “best describes their response to rising food prices?”, those who said they buy only essentials and have cut down on luxury items, dropped nine points to 54% in 2019, while those who say they have switched to cheaper brands also dropped 9 points to 20% in 2019 - both indicators of increased consumer positivity towards shopping.

The majority of consumers still conduct their main shopping trip once a month, however the frequency of weekly top-up shopping is increasing.

“Everyday needs, special offers and meal prep shopping has increased with consumers more willing to spend outside of the monthly shop," said Reddy. "The total amount spent has also increased, as shoppers spend more on luxury items, while spending on fresh food remains consistent."

Consumers are shopping around, "which alludes to the adoption of more bargain-seeking behaviour and they also seek novelty," said Reddy.

Nearly six out of ten shoppers say they will "check out" a new store in their area.

“With shoppers always on the lookout for promotions, new stores are seen to be attractive, as these stores are perceived to have enticing promotional campaigns running,” commented Reddy.

Looking at the growth of specific store types over six years (2012 vs 2018), the report found that supermarkets increased by a whopping 77% to to 4,988 while hypermarkets have shown a 35% increase to 66.

Medium to large independent stores have risen by 8% to 42,764 and small independents - which include spaza stores - have risen 1% to 95,628.

The frequency with which people shop at supermarkets has increased. Spazas on the other hand have shown a decline in the percentage of people who have visited the store over the past week and month. However, the frequency of visits to spazas remains the same as 2018.

Reddy said the 2019 study points to a difficult but dynamic picture for the future of retail in SA.

“Retailers and manufacturers are similarly challenged to engage and contend for the basket of an increasingly fickle shopper in the midst of the current competitive environment.

"Value for money and the shopping experience are driving store choice and retailers therefore need to enhance the shopping experience through innovation and useful tactics such as one-stop shopping, promotions, in-stock products and an overall enjoyable experience."