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Consumers face empty shelves

02 Apr 2023
Author: Neil Helps

Consumers face empty shelves and queues

Most consumers are noticing the price of household goods increase at an alarming rate. There is already lack of stock of certain items in stores across South Africa.

Disruptions in the supply chain are by the looks of it, becoming the new norm. These disruptions are continuously adding to rising prices.

According to the latest Global Consumer Insights Survey Pulse (GCIS) conducted by PWC ” supply chain disruptions had significantly affected the price of household goods, increased the length of queues in stores and led to some items being out of stock.”

PWC’s GCIS Survey represents the consumer class, where three quarters have some form of employment and just over 80% of the respondents are between the ages of 18 and 44.

The latest GCIS Survey highlighted the following in-store issues experienced by consumers and the volume of issues in these areas:

1. Rising prices for households - 70%

2. Longer queues and busier stores - 50%

3. Stock shortages - 28%

4. Reduced ranges - 26%

5. Unavailability of favourites - 21%

6. Lower quality than before - 21%

7. Longer delivery times - 21%

The economy is tight, and consumers are price checking everything and are making discount hunting their main aim. Consumers are taking up discounts, promotions, bulk-buying and loyalty schemes, at an all-time high.

Food inflation has increased by approximately 11.59% since last year according to the latest Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD). A food basket that costed you R4450 last year, will cost you R4966 this year.

Last year we saw supply chain disruptions increasing and the severity of it has had a tremendous effect on local business, with many small businesses struggling to maintain imports and the continuity of their businesses.

The South African Reserve Bank revealed data that indicates towards the end of last year supply was no better than in the peak of 2021. S&P’s purchasing managers index for February indicated that the main contributors to the supply disruptions were:

  • Reduced capacity due to load shedding
  • Import delays from China

It is expected that these supply chain disruptions will be with us for a while. It is clear there are massive areas for improvement and that the old systems and processes to mitigate these issues, are no longer producing results.

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