Makro has once again asserted its position as the most economical grocery retailer in South Africa, maintaining affordability for a standard basket of essential items compared to its seven major competitors.
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According to BusinessTech, Makro emerged as the leader.
The comparison included prominent retailers such as Shoprite, Checkers, Pick n Pay, Spar, Woolworths, Food Lover’s Market, and Makro itself. The items assessed in the grocery basket comparison encompassed a 700g loaf of Albany Superior sliced white bread, 2-litre sunflower oil (cheapest available), 2.5kg Iwisa maize meal, 2.5kg Selati white sugar, 2-litre milk (cheapest available), 2kg Tastic rice, 2.5kg Snowflake cake flour, 175g bar of Dettol herbal soap, and a 9-pack of two-ply toilet paper (cheapest available).
Occasionally, specific brands were unavailable at certain retailers, necessitating substitutions that were duly noted. It’s important to highlight that while the selected items were consistent across retailers for comparability, pricing variations could occur due to regional differences or franchise-specific pricing policies, particularly for Spar.
The pricing data collected from Gauteng retailers during mid-month reflects the normal prices of items, without factoring in temporary promotions or specials. As of June 2024, the average cost of the nine staple items totalled R416.65, slightly lower than the April 2024 figure of R412.14.
Makro offered the most economical basket at R379.59 in June 2024, showing a marginal increase of R13.95 compared to the previous month. However, this still positioned Makro R23.32 cheaper than its closest competitor, Spar, whose basket cost R402.91.
Remarkably, Makro achieved the largest price reduction year-to-date, with its basket costing R5.77 (1.5%) less than in January 2024, when it was R385.36.
It’s worth noting the variability in prices and product availability within franchises of Spar, and Food Lover’s Market emerged as the third most economical retailer with a basket cost of R403.91.
Conversely, Woolworths recorded the highest basket price at R443.91, which was R6.00 more than the previous month and R64.32 higher than Makro’s offering.
Checkers followed closely as the second most expensive at R438.91, with the steepest year-to-date increase of 3.78%, contrasting with Woolworths’ minimal 0.91% increase.
Additionally, the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) reported a decrease in food prices in South Africa since January 2024. However, they cautioned against premature optimism, noting that their broader basket of 44 commonly purchased food items reflected mixed trends, with notable price declines for items like onions (-16%), Butternut (-9%), and Green peppers (-7%).
Despite these decreases, the PMBEJD underscored ongoing inflation challenges, particularly evident in double-digit price increases for 15 items, with seven exceeding 20%.
Overall, while food and non-alcoholic beverage inflation slowed to 5.1% by March 2024, according to Stats SA, certain categories like hot beverages and oils and fats continued to experience upward price pressures.
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