BASKET CASE
High food prices stun SA consumers
ARE you a conservative shopper who gets away with a monthly grocery bill of R3 000, a cautiously indulgent one who spends R6 000, or a no-fear type who does not check prices and blows a staggering R10 000?
South African consumers are increasingly shocked as they realise how little they get for what they spend.
Johannesburg chartered accountant Korousha Chetty, 29, said that since last year her monthly bill for two adults had shot up from R2 200 to R3 000.
This, she said, excluded about R1 200 they spent on fresh foods and another R1 600 on takeouts each month.
Chetty, who lives in Kyalami in Midrand with her husband, said: ‘‘We have cut out buying things like chips and chocolates, but our biggest expense is convenience foods. They’re a luxury, but both my husband and I work long hours.”
Spending varies depending on the size of a family and whether they have younger or adult children living at home.
But, at the top end, consumers’ monthly spend is also affected by the number of luxury items they splurge on, because in their homes they have become a necessity.
Several consumers agreed that these items included products such as honey, salmon, avocados, yoghurt, lettuce, feta cheese and bacon — some of which can add between R300 and R400 to a shopping basket.
One Johannesburg shopper said she realised only this week that she had been paying R27 for a small bag of lemons.
“I figured it’s lemons and how much could they really be? But it goes to show that prices have gone up and we’re silly not to know how much things cost,” she said.
The mother of three said she paid R139 for a four-portion pack of Norwegian salmon a few months ago. It now costs R179.
“That’s the end of fresh salmon in my house.”
The 41-year-old said it was only when she received a report from the MySchool shopper rewards system that she realised the cost of her shopping trips to Woolworths.
The rewards accumulated showed she had spent between R8 000 and R10 000 a month just on food between December and April.
“I was there every single day, and that was in addition to weekly shopping that cost about R1 200 each time.”
Woolworths, in a general statement, said it targeted customers in the upper-income
An increasing number of people at all income levels are buying on credit
brackets of living standards measure (LSM) eight to 10, and these were mainly women.
“Our customers come for quality food they can trust. We track a basket of basic items every week to ensure that we remain competitive,” it said.
However, the company said it was difficult to compare all its prices with those of competitors because that did not factor in quality or “unique” aspects of its food business.
Rob Price, a market strategist at ETM Analytics, has been tracking a basket of 20 items across four major supermarkets during a year. He said their baskets increased by 8.4% in April.
Surprisingly, dish-washing liquid recorded the highest increase, from R20.12 in April last year to R25.12 last month, said Price.
For many South Africans, food is a big part of their culture and family life, so although the tough economy may result in them sacrificing holidays or other luxuries, they do not easily cut back on food.
A Johannesburg father of two daughters, 18 and 23, who both live at home, said he spent more than R10 000 a month on food.
‘‘It’s simple things like a tray of 18 eggs, which used to be R36 and now is R56. Just the other day, I paid R27 for three peppers. It’s outrageous,” he said.
The IT specialist admitted he was not a conservative shopper.
‘‘We do shop at Woolworths, which is a bit more expensive, but we want quality. I don’t have time to drive around looking for cheaper options because it will cost more in petrol.”
The less-for-more factor is driven by inflation, the depreciation of the rand, an increasing petrol price and, in Gauteng, the cost of e-tolls.
Casandra Victor, a store manager at Spar in Melville, said she was aware of rising food prices and always looked for ways to ease the burden on her customers.
“We launched the student card, which gives the holder a 5% discount on all groceries seven days a week. Pensioners get the same discount and they get double on a Wednesday,” she said.
“But we also try to do weekend specials. So we will do a milk tart, which is normally R28, for R10 for the whole weekend so that people who can’t afford a treat can buy it.”
Economist Francois Stofberg of the Efficient Group said lower-income consumers were the hardest hit.
‘‘There has been some good result out of the higher food prices as people become price conscious. They allocate resources more efficiently.”
Said a mother of a 22-year-old: ‘‘I’m not a conservative shopper. I buy what we want, but I’m very mindful of the increases.”
Although she makes an effort to stock up on items when they are on special, she still spends about R10 000 a month.
“It’s only three of us at home, but we entertain a lot. Food and sharing meals with others is a big part of our culture,” she said.
A spokesman for Shoprite Checkers, Sarita van Wyk, said the majority of its customers were in the middle-income LSM four-to-seven groups.
“In our Checkers brand, which targets higher LSM customers, the grocery spend per month does increase considerably relative to the population’s average,” she said.
VanWyk said that in an effort to ease the burden on con- sumers, the company had created a food-subsidy fund that had already subsidised 2 700 tons of rice, sugar and maize, 8.7 million loaves of bread and 9.2 million litres of milk and oil.
Professor Bernadene de Clercq of the University of South Africa’s Bureau of Market Research said an increasing number of people at all income levels were buying food on credit.
“Although everyone is noticing the increase in food prices, people are not always prepared to ‘buy down’, so they use credit to retain their spending habits,” she said.
‘‘It’s not necessarily only the high-end shoppers who are brand conscious. Many of those who have a limited budget and shop only at month-end still remain fixed on their favourite brands.” Comment on this: write to tellus@sundaytimes.co.za or SMS us at 33971 www.timeslive.co.za