DURBAN - SOUTH Africans are struggling to cope in these trying economic times.
This year saw many people lose their jobs, pushing up the unemployment rate to 29%. As a result, consumers are not shopping.
This was clear in last month’s retail sales figures released by Statistics SA.
Data showed that retail sales grew only slightly in August this year, compared to August last year.
Traditionally, those celebrating Diwali splash out during this time of the year. Clothes, fireworks and specialist Diwali eats make the list.
However, this year, consumers seemed to have tightened their belts.
Kireet Soni, of Soni Fireworks, said consumers were buying the bare minimum.
“Ten years ago, we had customers who would come into the store and fork out thousands of rand on fireworks without blinking an eye. But due to the tough economic situation facing South Africa, most families are willing to spend around R150.”
Soni said there was a massive decline in sales.
“Every year shoppers’ baskets are getting smaller. Last year, if a family bought fireworks to the value of R300, it has now halved. Families are purchasing cheaper items like your small fountains, pop pops and sparkles.”
Vinoo Harie, of Spice Emporium, said patrons were buying fewer groceries and baking items compared to previous years.
“Consumers have cut down on their shopping. Many, who normally purchased a 10kg or 5kg product, are now opting for smaller quantities in the 3kg and 2kg range.”
Harie said the cost of living increased on a large scale but the pockets of consumers remained the same.
“As a result, customers are on a tight budget, watching how much they spend.”
Meanwhile, bigger retail stores such as Pick n Pay have tried to remain affordable.
Janine Caradonna, a Pick n Pay spokesperson, said they prepared well to offer their Hindu customers the best value this Diwali.
“Over this celebration, we have introduced special promotions, so that customers can still serve their favourite dishes. We have discounted baking items as well.”
Nikita Morgan, of Shoprite, said Shoprite and Checkers in KZN have deals that are carefully chosen with customer shopping needs in mind.
This included discounts on selected products such as food and house-hold items.