Following on from the release of Woolworths' poor trading update, Stafford Thomas takes a look inside the rot at Woolworths. He interviews Evan Walker of 36One Asset Management to discuss the retailer's tactics of promotions and aggressive pricing in the ‘war to capture the dwindling spending power of SA consumers'. "It is going to be a very tough year," says Walker.

Ailsa Wingfield from Nielsen believes a multi-dimensional approach will be required if retailers are to obtain a firm handle on South Africa's new retail reality. She says that despite consumer sentiment, consumers continue to spend, suggesting a disconnect between the psyche and actual purchase behaviour or ‘schizophrenic mindset'.

Euromonitor International's Daphne Kasriel-Alexander summarises the top 10 consumer trends for 2017. Commenting on the report, she says consumers have reacted to the uncertainty of 2016 by tightening their purse strings and being more demanding of products, services and brands, using digital tools to articulate and fulfil their needs.

On the subject of digital, specifically mobile as a transacting tool, Peter Miller of wiGroup has noticed “a confluence of trends and a maturing consumer market that is far more confident in its use of technology… bringing sweeping changes to the way South Africans bank, buy and engage with brands.”

One such company is simplifying the route to purchase. With PriceCheck's 'Marketplace' consumers can stay on-platform and purchase directly on the product comparison site using a unique one-click checkout.

Another retailer that's looking for ways to meet the needs of the more demanding customer is TFG. The clothing retail company recently partnered with WumDrop to offer customers its Deliver 2 Me technology, using geolocation services to pinpoint the customer on the go. Moreover, the group says its Christmas sales exceeded expectation – "a welcome surprise after updates from Woolworths and Truworths sparked fear of a further downturn in the retail sector," reports Colleen Goko.

Read on for more of last week's top stories, and for other exclusive trends-specific opinion pieces, follow #BizTrends2017.

Enjoy!


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