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Learn moreApr 2017
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The South African consumer economy continued to deteriorate towards the end of the review period. The impact of the severe droughts experienced across the country during 2016 continued to cause increases in the price of the basic monthly shopping basket.
Massmart Holdings maintained the leading position in mixed retailers in 2016 with a 33% value share. The retailer operates the only mass merchandisers and warehouse clubs outlets in South Africa. Massmart’s high value share in the channel can be attributed to its aggressive low-price strategy. The review period saw the company investing in food retailing with the addition of the Foodco brand in its outlets operated under fasciae such as Game and Makro. In 2016, Massmart also introduced hot prepared food in some of its Game outlets, allowing consumers to purchase ready-made food. Makro, meanwhile, rolled out locker-based collection services for its online customers towards the end of the review period. This service is expected to supplement the company’s home delivery and in-store click-and-collect services. Makro took this idea one step further by entering into partnership with McDonald’s SA on a pilot project to test collection lockers located at McDonald’s fast food outlets.
The 4% value CAGR expected in mixed retailers at constant 2016 prices over the forecast period is set to be a slowdown from the 7% value CAGR registered in the category over the review period. This slowdown in growth is set to be mainly because socioeconomic challenges are likely to continue restraining the pace of growth in the economy, which is expected to continuing putting consumers under pressure. As a result, low prices are expected to be key driver of purchases through mixed retailers during the forecast period.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Mixed Retailers industry in South Africa with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Mixed Retailers industry in South Africa, our research will save you time and money while empowering you to make informed, profitable decisions.
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This industry report originates from Passport, our Retailing market research database.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.