Lower Virus Transmission Levels Remain Amongst 3rd wave Warnings
- Stark warnings of an imminent Covid 3rd wave, following Easter long weekend gatherings and a slow vaccine role out, dampen celebrations as SA maintains low transmission rates
- Low total retail performance figures suggest economic contraction by the end of our first quarter
- South Africans are still spending more time at home versus pre-lockdown, however time spent in retail environments and workplaces is returning to normal levels
- Consumers continue to eat at home far more than last year.
- Earlier than usual SASSA payments and unrestricted liquor trading, drove declines in the 2nd week of March
– The beginning of March saw a pantry stock-up shop featuring the usual staples, particularly Frozen Meat
– Alcohol categories grew as consumers sought to fill liquor cabinets, before budget speech-related price hikes were implemented
– FABs, bolstered by March promotions, were a particular favourite this month, but Gin and Brandy also retained top of market positions
– This spend left less money available for the rest of the month and consumers spent significantly less on food, other beverages and personal care items in the rest of March
– Liquor sales reopening gave manufacturers space to focus on NPD – both Distell and SAB launched into the internationally successful Hard Seltzer category
- Some purchasing behaviours have returned to normal, but online continues to reap the benefit of South Africans looking for a convenient and safe alternative to brick-and-mortar shopping
- Virus prevention is better than cure to Covid-19 wary consumers who are showing a renewed focus on overall health
– Across both SA and the US, Wellness and related categories are performing strongly and see spikes linked to infection waves
– Hand Santizer and Bath Soap growth is expected to remain high as consumers practice better everyday hygiene
– In SA, this trend is seen across all LSMs though more prominent in the wealthier, higher LSM group
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