26 March 2024: As South Africa gets ready to enjoy the Easter festivities, many consumers are gearing up for more financially modest celebrations amid ongoing economic challenges. With issues like load shedding, higher prices, and sluggish economic growth, everyday South Africans are feeling the pinch, with a staggering 87% saying their finances are feeling “stretched”, according to marketing, research, and data specialists at KLA.
This is according to Rynhardt de Lange, Milaw’s Legal Director and Head of Legal, although spending during the Easter period has typically shown a steady increase historically, indicating a recovery from the pandemic, current factors like rising living costs, economic slowdown, and worries about job stability are making consumers more mindful of their finances.
“The current economic climate presents unique challenges for South African consumers,” said de Lange, “With soaring food prices, many are now prioritising essentials over non-essential spending like vacation spend, leading to widespread financial stress during this holiday season.”
The latest NIQ Consumer Outlook report unveiled that nearly half (44%) of South African consumers believe they’re in a tougher financial spot in 2024 compared to last year. Among them, 82% blame soaring living expenses for their financial woes, while 62% point fingers at the economic downturn.
Despite these obstacles, de Lange expressed optimism about the forthcoming Easter season, anticipating a surge in consumer activity. “South African consumers are showing resilience and ingenuity in finding ways to cut costs, with almost everyone (99%) changing their shopping habits to cope with the financial strain, according to the NIQ report,” he said.
“Consumers are switching to cheaper options (48%), stocking up during sales (48%), visiting discount stores (46%), shopping online for deals and savings on transport (31%), and favouring stores with loyalty programs (59%) to manage their spending,” said de Lange.
With Easter around the corner, KLA’s recent survey on holiday spending underscores the importance of thoughtful giving amidst budget considerations.
“The sentiment of “it’s the thought that counts” rings true, as only 42% of respondents plan to increase their holiday spending. Meanwhile, 32% aim to maintain similar spending levels, and 22% intend to tighten their purse strings compared to last year,” said de Lange.
As consumers dive into Easter spending, de Lange shares some savvy tips:
Budget Wisely: Map out a realistic budget for your Easter expenses, giving priority to essential purchases. Stay on track by planning ahead and avoiding impulse buys.
Shop Smart: Hunt for discounts, promotions, and special deals when stocking up on Easter essentials. Compare prices and consider buying in bulk to stretch your budget further.
Focus on Family: Shift the focus from lavish spending to quality time with loved ones. Create lasting memories with low-cost or free Easter activities that bring everyone together.
Monitor Spending: Keep a close eye on your expenses throughout the Easter period to ensure you stay within budget. Utilise mobile apps or budgeting tools to track your finances effectively.
Plan Ahead: Get ahead of the game by planning your Easter meals and activities in advance. By preparing ahead of time, you can avoid last-minute splurges and find budget-friendly options for decorations and gifts.
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