Unpacking the Township Economy: A Look at the 2025 Township CX Report
For five years, the Township CX Report has been a crucial guide, helping us understand the heartbeat of South Africa's township economies. Now in its fifth edition, the report continues to offer a window into the evolving lives of township residents, revealing how they navigate economic pressures and shifting consumer landscapes. This year, we've seen incredible resilience and adaptation, particularly within the spaza sector.
Trust and Loyalty: The New Currency
The report reveals a significant shift in consumer trust. A substantial 41% of township residents surveyed reported that they trust spaza shops more since the government’s spaza registration drive. This initiative, which ran from November 2024 to February 2025, resulted in 19,386 approved applications. This renewed trust is adding a new dimension of reassurance that could influence future grocery shopping decisions, alongside the traditional pull factors of price and convenience. Furthermore, 49% of respondents said they support more traditional spazas, suggesting a return to engaging with familiar store owners.
The Price of a Full Basket
The data shows that price remains a key driver of consumer behaviour. When faced with rising prices, 39% of respondents said they switch brands to find better value. This is largely the case among those who spend between R1 001 and R2 000 on groceries per month, with 44% of this group making the switch. This constant search for value means that brand loyalty is fluid, as shoppers are open to trying other brands for the same items.
The Digital Shift
Over the past five years, word-of-mouth in township communities has steadily shifted towards digital channels, particularly closed messaging platforms like WhatsApp. In fact, 70% of shoppers who have increased their spending at spazas rely mainly on Facebook and WhatsApp to discover new products and discounts. This change makes it essential for brands to design omnichannel strategies that integrate naturally into everyday conversations.
Stokvels Anchor Saving
For township communities, stokvels remain one of the most trusted ways to save. The 2025 findings reinforce this, with 40% of respondents belonging to grocery stokvels and 30% to funeral stokvels. This highlights that saving is driven by immediate needs like putting food on the table and preparing for unavoidable costs. The data also shows that 45% of respondents are members of one stokvel, while a further 25% participate in two. This shows how households diversify their commitments to meet different, non-negotiable needs.
A Strategic Moment for Brands and Retailers
The 2025 Township CX Report highlights a pivotal moment for brands and retailers. By understanding the shifting dynamics of trust, price sensitivity and community loyalty, companies can move beyond transactional relationships to become strategic partners in the social and economic fabric of township life. By leveraging the proximity and agility of spaza shops, and communicating value where it matters, brands can build trust and create shared value that keeps these neighbourhood hubs commercially viable and central to township life.
Don't miss this opportunity to gain valuable insights into the township consumer and learn how to build lasting relationships in these dynamic communities.
Register now to secure your spot and receive a full copy of the report!
