Shoppers seek value over cheap options

Shoppers in the country are not merely switching to cheaper options, they are acting with greater intention regarding where their money yields the highest returns. Tony Mun-Gavin, the Managing Director of Encore, observes that this conduct is spreading across the entire grocery basket.

Private label sales climbed to R53.5 billion in the first half of 2026, a 1.9% increase from the previous year, highlighting the significant role that retailer brands hold in South African shopping carts.

Global data reinforces this perspective on store brands. Circana reported that American shoppers place equal trust in retailer brands as they do in national ones regarding quality, indicating that their appeal goes beyond just pricing.

Understanding Value

This signals a shift in how value is perceived. While private label was historically linked to making concessions, that distinction is blurring. When quality remains steady and the offer is pertinent, buyers have grounds to select a retailer brand even if price is not the sole factor.

South African buyers are not just becoming price aware, they are becoming value aware. Value is not exclusively a lower price; it is the blend of quality, volume, ease of use, and experience at a rate that feels equitable.

This clarifies why the draw of private label stretches past basic goods, covering staples, fresh produce, dairy, and household items, as well as prepared meals, wellness options, and affordable luxuries.

Consumer Behavior

Household budgets shape these choices, but income levels alone do not explain them. The same individual can be very price sensitive in one sector while willing to pay a premium in another.

A home might select an economical staple item while still investing in a luxury snack, a product designed for convenience, or an item believed to provide specific health advantages. This means the concept of a single South African consumer is becoming less useful.

Private label can satisfy various requirements within the same basket, ranging from reliable basics to more unique and premium goods. The equilibrium between wellness and affordability is visible in PwC’s 2025 Voice of the Consumer research.

The data showed that 42% of South African respondents listed health advantages as a primary reason for switching food brands, while 70% intended to consume more fresh produce. Simultaneously, over half reported difficulty paying bills and 54% were seeking ways to extend their budgets through cost-cutting measures.

Convenience and Local Sourcing

Convenience also factors into the value equation. For households managing work, family, and other obligations, items that streamline cooking, fit smaller shopping trips, and ensure consistent quality can provide meaningful worth without demanding a higher price for convenience.

Domestic sourcing adds another layer, particularly when it combines quality, agility, origin, and economic advantage. Private label items created with local partners can mirror the tastes and requirements of the localities they serve.

Younger buyers are helping to hasten this evolution. Their receptiveness to retailer brands challenges the power of brand history, placing relevance, styling, ethics, and performance in a more central position.

The Future of Retail

Success will come from grasping the compromises consumers are making and structuring offers around those realities. For South African buyers, the expectation is value without compromise: products that are affordable, but also good; convenient, but not inferior; healthier, but still accessible; and locally relevant, without sacrificing quality.

Private label is gaining from this trend, but the more significant narrative is what it reveals about the buyer. The shopper is not abandoning brands, they are re-evaluating the worth of a brand and asking for a superior return on every rand spent.