The review period saw modern grocery retailers expand into previously disadvantaged areas such as townships, rural areas and suburban areas. These retailers offer a wide range of low-priced products which are affordable to consumers from these communities.
Traditional grocery retailers benefits from the convenient locations of these stores and their offer of a basic range of essential groceries and home and personal care. Like most channels, traditional grocery retailers saw slower growth in 2018 due to economic factors such as the increase in VAT and the hike in fuel prices, alongside high unemployment and low disposable income.
Food/drink/tobacco specialists continued to dominate sales of alcoholic drinks in South Africa and this helped drive growth in traditional grocery retailers, with the leading players all being liquor stores. Tops, Pick ‘n’ Pay Liquor, Boxer Superliquors and Market Liquors all recorded dynamic value growth in 2018, with these players expanding their store networks.
Traditional grocery retailers continued to be led by leading chained retailers in 2018. The review period witnessed the ongoing expansion of liquor stores, which are predominantly owned by leading retailers such as Pick ‘n’ Pay, Shoprite and Spar, with these having a significant presence across the country.
The overall leader in traditional grocery retailers in 2018 was Spar with its Tops chain of liquor stores. Tops outlets are usually located next to a Spar, Kwik Spar or Super Spar outlet, providing a one-stop-shop in convenient neighbourhood locations where consumers can purchase both groceries and alcoholic beverages.
Second-ranked Pick 'n' Pay Liquor witnessed one of the most dynamic growth rates in 2018 as it also continued to expand its network of stores. The chain benefits from its wide offer of affordable alcoholic drinks and the convenient locations of its stores.
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