Shopping malls are bracing for a bumper Christmas, with commercial property owners reporting an increase in pre-festive shopping and expecting a fresh surge in the coming days.
Despite a tough economy that affected consumer spending this year, mall owners Redefine Properties and Growthpoint said there had been a significant increase in foot traffic in their shopping centres since November 29, Black Friday.
Redefine properties own malls including Mall of the South and East Rand Mall, while Growthpoint is the owner of Waterfall mall and Lakeside mall in Benoni.
Gavin Jones, head of asset management at Growthpoint, said Black Friday had sparked cautious optimism that this year’s festive season would be a better one for property owners than last year.
“Growthpoint remains cautiously optimistic that, with the improved customer confidence levels, 2024 festive trade will be more buoyant than previously,” he said.
“The strongest signal is the marked improvement in trade over the Black Friday period compared to 2023; foot counts in the retail portfolio were up on average 3.5% nationally and close to 6.9% in the Western Cape.”
Nashil Chotoki, national asset manager for Redefine Properties’ retail portfolio, said there had been an improvement in trading conditions since the beginning of December.
Its malls had experienced a 14% increase in foot traffic on Black Friday weekend, compared with 2023. “With positive trends in retail sales, rental renewal rates and visitor foot count, the momentum in the sector bodes well for South Africa’s future growth.”
While consumers are still feeling the impact of high interest rates and inflation, this has not stopped them from spending money on snacks, treats, Christmas-specific items and booze.
According to the Spar Group, there has been an increase in demand for snacks. While essentials remain a priority, the group said there was a clear inclination towards indulgence.
Mpudi Maubane, national PR, communications & sponsorship manager at the Spar Group said across provinces, consumers looked for products that were on special, especially for essentials.
“Shoppers continue to focus on specials, deals and bulk buying. However, we’ve seen a notable increase in the purchase of treats and snacks, which aligns with the celebratory mood of the season. Nonperishables remain a bulk-buying favourite,” Maubane said.
At Pick n Pay, quality fresh products are top of many shopping lists over this festive season.
“Christmas roasts and our summer fruit range, like stone fruit, grapes, fresh cherries and watermelons are especially popular for desserts and entertaining,” it said. The retailer added that biscuits, chocolates, cool drinks and ice cream remained festive favourites.
While customers have adjusted their baskets to accommodate these “luxury” items, Pick n Pay said shoppers continued to prioritise value. Its discount chain Boxer — which had a successful IPO recently — found that custard, jelly, canned peaches, biscuits and chocolates were the fastest-moving products during this time, a common trend across the country.
“Additionally, our butchery, fresh produce and bakery departments are customer favourites during this time of year, offering the freshest ingredients and indulgent treats to make every festive braai, shisanyama and dinner table celebration memorable,” said Jason McCall, spokesperson for Boxer.
With the consumer price index at 2.9% for November, meat prices were 1% lower last month than a year ago. In October meat price inflation was just 0.5% in October. The November figure is the lowest for meat since May 2019.
FNB senior agricultural economist Paul Makube said this was good news for consumers as they stock up on meat for holiday braais.
The slight improvement in consumers’ financial welfare following the recent interest rate easing and the liquidity injection in the economy due to the two-pot retirement withdrawals will boost meat demand during the braai season
— Paul Makube
“The slight improvement in consumers’ financial welfare following the recent interest rate easing and the liquidity injection in the economy due to the two-pot retirement withdrawals will boost meat demand during the braai season.”
He said meat eaters could expect further relief early in the new year as the lower seasonal demand after the December holidays placed downward pressure on prices.
Meanwhile, alcohol sales are soaring as South Africans spoil themselves and celebrate with friends and family during the festive season after a tough 2024.
Alcohol producers say primary demand is for spirits, especially gin, whisky and vodka, with many South Africans indulging themselves with premium items. Zoleka Lisa, vice-president of corporate affairs at SAB, said premium brands were always popular at this time of year, but lower-priced stalwarts retained their place at the braai.
“Castle Lager continues to be a favourite for braais and family gatherings. Castle Lite is popular in bars and restaurants, offering a refreshing choice.
“Our nonalcoholic portfolio, such as Corona Cero, caters to those seeking moderation while still enjoying the festive spirit,” she said.
Lisa said the “beyond beers” portfolio (Brutal Fruit, Black Crown and Flying Fish) resonated strongly with consumers looking for variety and different “celebration moments”.
“The popularity of these offerings often varies by province, influenced by cultural and regional preferences.”
She said SAB’s premium portfolio catered to a wide range of consumer needs and preferences.
“Our premium offerings like Corona and Stella Artois also resonate strongly with consumers locally and in other markets, showcasing our ability to meet different tastes across markets,” Lisa added.
Pamela Nkuna, Middle East & Africa corporate affairs director for Pernod Ricard, said sales had been rising since November. “Generally, we sell more white spirits in KwaZulu-Natal and the Eastern Cape than in other regions — Absolut vodka in KwaZulu-Natal and gin in the Eastern Cape. As far as the rest of South Africa is concerned, there tends to be a preference for whisky and cognac,” she said.
Gins in the Pernod Ricard stable include Beefeater and Inverroche and its other brands include Jameson Irish whiskey, Ballantine’s, Chivas Regal, The Glenlivet Scotch whisky, Martell Cognac and GH Mumm and Perrier-Jouët champagnes.
Nkuna said shoppers clamoured for celebratory brands, such as champagne, at this time of year. “Consumers tend to spoil themselves with more premium whiskies [and] tend to look for gifting offerings.”
She said Pernod Ricard’s preparations started months ago to ensure that no-one goes thirsty over the festive period. “Our operations team began their stock forecasting in February to ensure that sufficient stock is carried for the season. We also collate data from previous years with information from key customers to predict demand and plan accordingly,” Nkuna said.
Sibani Mngadi, corporate relations director at Diageo Southern Africa, said gin was a perennial favourite. “We have Gordon’s gin and its flavour variances as a leading brand in this area, with Tanqueray London Dry and Tanqueray 10 occupying the premium portion of the gin market.”
He said Gordon’s ready-to-drink (RTD) line — gin pre-mixed with tonic in a can — was selling strongly. .
Mngadi said much of Diageo’s production in South Africa was based in at Prospecton, south of Durban. This includes Smirnoff vodka, Captain Morgan rum and Gordon’s gin.
“The plant is running at full capacity during this period to meet the festive season demand. The successful launch of Gordons RTD also means that we need to increase our production activity to meet that demand. We also do appropriate demand planning for imported stock — particularly Scotch whisky, which is our big play in South Africa,” he said.
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