There is light at the end of the tunnel

  • At day 141, daily new Covid-19 cases have started to decelerate across all provinces, suggesting that an end to the peak is in sight. Grocery sales remain similar to previous levels
  • Higher consumer spending continues across categories Baking, Yoghurt and Pantry staples as consumers cook at home. Juice and CSDs have shown declines throughout the lockdown period
  • Soap & Sanitizer and Vitamins remain at the top of consumers’ lists. Household Cleaning, Wipes, Personal Care and Toilet Paper were previously declining, however they now show growth at the start of August
  • The alcohol ban impact has now extended into manufacturing as AB InBev, Heineken and Consol have announced the cancellation and postponement of projects that would have resulted in additional jobs for South Africans
  • E-Commerce remains a key focus area across retailers. This may be the boost the online contribution needed in ZA to be on par with other countries in the long term
  • Sales of DIY categories grew from lockdown level 4. Growth has been strong as shoppers take advantage of free time to work around the home and garden. Growth across Garden, Hand Tools, Power Tools and Flooring has been consistent across all lower LSM groups
  • Stock piling in March lead to declines for Analgesics and Cough & Cold across April and May, however this turned around into July. Total Cough & Cold growth over lockdown is at 2%, possibly indicative of a lower incidence of colds and flu due to social isolation
  • Covid-19 poses a different set of opportunities for retailers and manufacturers and some are winning. See IRI U.S’s webinar and article (https://www.iriworldwide.com/IRI/media/Library/U-S-CPG-Growth-Leaders-Webinar-Mid- 2020-8-5-2020-vFF.pdf) showing how brands are winning in the U.S through acquisitions supplemented by innovation, surgical pricing across portfolios, E-Commerce and a focus on emerging trends

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