Shopping trends don’t follow LSM rules
The notion that the wealthier, the middle class and the less privileged elements of society tend to shop within their own market segments and in specifically targeted stores is an urban legend.
This is graphically illustrated by some of the findings in Avusa’s Gauteng Wealth survey.
It is not uncommon for an affluent shopper in the upper LSM (Living Standards Measure) bracket to buy a simple white T-shirt from Mr Price, then invest in a pair of designer jeans from one of the more “fashionable� expensive stores.
As Pick n Pay’s GM for strategic marketing, Lyndsay Webster- Rozon, pointed out: “Our highest LSM segment of shoppers will buy premium goods, but will buy no- name products as well, such as tin foil or paper towels — the products that will do the job. Where brand is not important, customers are quite happy to save money accordingly.�
The research showed that 31% of a sample of the upper LSM groups had used a Shoprite store in the previous four weeks. Shoprite Group marketing director Brian Weyers said: “The emerging middle class, with its increasing disposable income, has remained loyal to the Shoprite brand.�
Niel Victor, MD of market research organisation Research and Planning Intelligence, noted that Shoprite accounts for 60% of all grocery sales in value terms.
He said: “There are shoppers for whom a Pick n Pay/Woolworths type layout would be preferable. Others go for stores that are more clinical, where they can get exactly what they want, and go in and then get out quickly. But for those shoppers who tend to go to Shoprite and some of the more localised supermarkets, shopping becomes something of a social occasion — they tend to shop on a particular day of the week, for instance, because some of their friends do likewise .�
Victor said it was striking that all retailers appear to have performed well. “This suggests that the slightly more wealthy Gauteng residents shop at more places, and are possibly more discerning shoppers, than you’d find across the total population.�
Edgars and Woolworths vie for top spot in the clothing segment. Said Victor: “But the profile of shoppers buying clothing from Edgars and Woolworths would be different. Edgars shoppers may be slightly more fashion conscious, whereas Woolworths shoppers tend to be more conservative, but want good quality.�
The top rating of American Swiss in the jewellery and watches segment suggested that customers — particularly with jewellery — prefer to buy in dedicated jewellery stores, as opposed to departmental-type outlets. “Jewellery is seen much more as an investment and has many emotional connotations to it, often bought for a special occasion.�