South Africans warned to tighten belts as festive season approaches

As South Africa's festive season approaches, the Pietermaritzburg Economic Justice and Dignity Group (PEJDG) has warned consumers to be cautious with their spending. With food prices expected to continue increasing, the group predicts a deepening affordability crisis for consumers. PEJDG programme coordinator Mervyn Abrahams advised consumers to budget carefully, only buying what is essential, as prices are projected to rise.

According to the PEJDG's September study, food prices have outstripped income, with a food basket costing R5,488.06, while the national minimum wage stands at R5,078.64. This disparity is likely to worsen, exacerbating the affordability crisis. Abrahams emphasized the need for consumers to be mindful of their spending, particularly with Black Friday and end-of-year celebrations approaching.

Despite the warning, research by the Brand Journal found a surge in retail sales during the festive season. The Festive Trading Gap research reported that retail sales in November 2025 were 23% above the average month, with December figures standing at 45% above average. The two months combined account for 21.1% of the year's total retail sales.

A national survey of over 5,400 people identified December and January as the most challenging months for their budgets. The survey also found that about a third of township residents belonged to stokvel or group savings schemes, with one national wholesaler serving more than three times its usual number of stokvel customers in December.

The research highlighted the importance of local shopping, with festive spending through card machines in Soweto increasing by 35.2%. Phones and data costs also play a significant role in shaping shopping habits, with 41% of township residents ordering from local businesses by phone and 37% citing data costs as a barrier to engaging with brands online.

The report also emphasized the rights of shoppers under South Africa's Consumer Protection Act, including the right to a refund when an item bought in advance runs out and the requirement for "was" prices on sale labels to reflect actual prices charged. Lindsay McDonald of Brand Journal noted that the festive season often puts household budgets under pressure, making local shops crucial to communities.

The Festive Trading Gap report brings together data on festive spending, stokvels, household costs, and shoppers' rights, providing valuable insights for households, shop owners, and policymakers. The report is available online, offering a comprehensive guide to navigating the festive season in South Africa.

Key points

• Food prices are expected to continue increasing, deepening the affordability crisis for consumers.
• Retail sales surge during the festive season, with November and December accounting for 21.1% of the year's total retail sales.
• Local shopping plays a significant role in festive spending, with township residents relying on stokvels and local businesses.