Johannesburg - Spar, a South African food and liquor retailer, is counting on regular discounts for sales growth as consumers face higher unemployment, increasing household debt and rising interest rates.
The proportion of sales from discounting to total sales has increased over the last five years, with promotions now accounting for more than 20 percent of revenue, chief executive Graham O’Connor said in a phone interview
“People want bargains, they want to have specials, so you certainly need to do it,” he said.
“If you don’t do it, you won’t get a vast majority of your customers into the stores.”
While this strategy is driving sales, “there are more and more cherry pickers going for the specials and really rotating the stores where the specials arise,” he said.