Why SA's retail giants are rethinking constant promotions
These businesses face limits on how much cost pressure they can absorb internally, how aggressively they can promote, and how far they can push prices.
Trade Intelligence’s 2026 South African FMCG Retail Outlook examines forces, such as these, that are reshaping the retail landscape as the industry plans for the year ahead.
How value competition intensified
In 2025, real retail growth returned, particularly in food and everyday essentials, but it was hard-won. Households remained under pressure, juggling debt, utilities and food costs, while retailers and manufacturers competed intensely for share across formats and channels.
In this environment, price and promotions became central to retailers’ strategies, a rational response to constrained shopper budgets and heightened competition.
Discounting helped protect volumes, loyalty programmes influenced trip decisions, and ‘value’ became increasingly synonymous with visible price savings.
As the year progressed, it became clear that the reliance on promotions had become embedded in how the market operates.
Prolific levels of promotions
South Africa has one of the highest levels of ‘promotional intensity’ in the world, with a significant share of sales driven by specials.
As seen in the global comparison table, South Africa has a high and increasing reliance on special offers, discounts and promotions.
Looking at the retailers specifically, Clicks is at the high end of the spectrum, where 47% of revenue comes from products sold on promotion (rising steadily from 41% in 2021).
There are different attitudes to promotional intensity levels, with Clicks embracing its high level of promotional intensity, while Shoprite warns of margin erosion.
When value loses its sparkle
Promotions have become central to winning footfall and driving volume, resulting in a landscape where deals are expected rather than exceptional, and where promotional noise makes it harder for retailers and brands to stand out.
A key pitfall of sustained, high promotional activity across the market is that promotions do not automatically build loyalty.
“Shoppers are highly fluid, cherry-picking offers across retailers and brands, and they are often guided by loyalty apps and digital price comparisons,” explains Nicola Allen, senior analyst at Trade Intelligence.
According to Trade Intelligence research, 58% of South African household shoppers shop at four or more different retailers and have on average 3.6 loyalty cards.
“The abundance and constant nature of promotions has also led to the emergence of ‘promo-only shoppers’, who wait for their items to go on promotion before buying,” continues Allen.
At the same time, retailers and manufacturers face limits on how much cost pressure they can absorb internally, how aggressively they can promote, and how far prices can be pushed without undermining brand positioning or shopper trust. High promotional intensity brings diminishing returns, margin pressure and narrows the scope for further price-led growth. The way value is delivered must evolve.
The next phase of value
“The current environment is likely to result in two key shifts – greater personalisation versus everyday low pricing,” says Allen.
Focus is moving towards more personalised offers, based on how, where and what people buy. Loyalty programme data is central to this change, increasingly determining who gets which deals and when. Rather than offering the same promotions to everyone, value is becoming more targeted and behaviour-led, reflected in initiatives such as Woolworths’ relaunched WRewards programme.
Meanwhile, other retailers are placing greater emphasis on managing price perception through consistent everyday pricing and credible value cues, rather than relying on frequent or constant promotions.
Retailers such as Boxer, Makro and the recently opened Walmart stores lean more heavily on EDLP (everyday low price) strategies, using stable pricing to signal value and build trust.
Behind these shifts sits a commercial reality: retailers and suppliers are trying to balance affordability for shoppers with sustainability – what makes financial sense and is viable for their businesses? And for shoppers, the result is likely to be a value experience that feels less noisy, more personalised and, over time, more predictable, even as price sensitivity remains high.
Value is not losing importance in South African FMCG retail, but it is changing shape. While still driving volumes, simply increasing promotional intensity or discount depth delivers less loyalty and profit for both retailers and brands.