Far from being a peripheral market, the township economy is a driver of the broader consumer landscape, where adaptive behaviour in the face of inflation, a renewed trust in local businesses and a powerful digital presence are setting new standards, according to the 2025 Township Customer Experience Report.
One of the main takeouts from this year’s report is the ongoing tug-of-war between price and value. Food inflation continues to put significant strain on township budgets, forcing shoppers to be very intentional with every rand spent. This price sensitivity directly impacts brand and store loyalty, with widespread brand switching. A significant 39% of township shoppers switch brands when grocery prices rise. This behaviour is most pronounced among those spending between R1,001 and R2,000 per month on groceries, with 44% in this key segment making the switch.
In search of better deals, promotions and multipacks, 54% of respondents have increased their visits to supermarkets in the past year. Even among those who switch brands, 50% are shopping more often at supermarkets.
While price is a driver, shoppers now demand consistent, demonstrable value. A quarter of those who switch stores base their decision on how price relates to quality, location and promotions. Brands are expected to deliver consistent value, stay visible in communities and show up as partners, as 62% of consumers remember brands that support their communities in difficult times.
Following a national registration drive, spaza shops have not only survived a period of scrutiny but have re-emerged with renewed community confidence, underscoring their irreplaceable role in the fast-moving consumer goods ecosystem.
After the registration of about 19,000 outlets, 41% of township residents say they now trust spaza shops more, while 49% said they support more traditional spazas, favouring familiar store owners.
Despite competition from formal retail, 29% of respondents have increased their shopping at spazas over the past 12 months, signalling a preference for buying smaller, top-up items close to home to save on travel costs.
Spazas are becoming strategic sampling and distribution centres. The report notes that 70% of shoppers who have increased their spaza spend rely on Facebook and WhatsApp, as well as in-store promotions, to discover discounts and new products. This highlights the blend of local commerce with digital word-of-mouth.
Spaza shops have not only survived a period of scrutiny but have re-emerged with renewed community confidence
Township food culture is setting standards that mainstream brands must follow, driven by an unwavering commitment to flavour and experience. A significant 73% of township consumers said they will not compromise on taste, even amid financial pressure. This insistence shapes competition among large chains and local eateries, with local food spots now drawing visitors from outside their areas.
Fast food remains one of the strongest categories in township spend. KFC (31%) and Chicken Licken (23%) dominate queues, with chicken brands remaining the safe choice.
The report identifies an expanding middle-income segment, with fast-food spenders in the R5,000-R9,999 household income bracket having grown to 39% (nearly double 2024’s 20%), making them a primary target for promotions. Furthermore, 69% of fast-food decisions are made by mothers and caregivers, balancing budget with family preferences.
Connectivity is no longer a luxury but a fundamental tool for economic participation, driven primarily by the need for opportunity. For many households, the monthly spend on connectivity, with 37% spending between R251 and R500, is a major budget line that competes directly with essentials like food. This highlights the need for affordable, low-data digital experiences.
For higher-spend residents, job hunting ranks as a leading online activity (60%) with the internet viewed as an enabler for job seeking and side hustles. Women often take the lead in ensuring their households are connected and are the primary drivers of digital shopping habits, aligning with their role as household decision-makers.
Township financial life is defined by a layered system that combines trusted, informal mechanisms with formal products, with stokvels standing out as the most enduring tool for financial stability.
Participation in stokvels is now at a remarkable 71%, representing a 39% increase in just two years, with 40% of residents belonging to grocery stokvels and 30% to funeral stokvels.
Financial saving is heavily focused on immediate needs and cultural obligations, with 60% of township residents having funeral cover compared with only 10% with life insurance.
While 91% of residents have a bank account, only 37% feel understood by their bank. High fees and a lack of transparency continue to push many towards informal systems, highlighting a need for financial institutions to build more relevant, trustworthy products.
The big take-out: One in three township shoppers prefer buying from local entrepreneurs over national chains.
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