Consumer spending is recovering better than expected in most categories as the lockdown rules for Covid-19 have been relaxed.
This is based on data from FNB, which suggests that the spending of people who Debit, credit and merger cards are up 19.2% year-on-year (Y / Y).
Consumer spending is showing a strong recovery, particularly in the areas of:
- Telecommunications and Internet services,
- health and wellbeing, and
- animal or pet related categories.
Entertainment saw a 52.5% year-over-year increase, while food spending increased by a further 5.6% year-on-year on top of the 12.7% in 2020.
< Chris Labuschagne, CEO of FNB Card, said: "The spending momentum shows that consumers and retailers are settling into a new normal when shopping. Many consumers and businesses h But online shopping has become part of their lives, and we see that this trend will only increase in the months ahead. It is also gratifying that customers shopping at a point of sale [in-store] are recovering strongly. ”
However, travel and vacation expenses were up 28.5% year-on-year, but still down 46%. compared to the same period before Covid-19.
Raj Makanjee, CEO of FNB Retail, said: “The overall trend shows that consumers are gradually returning to economic participation, but some sectors are still lagging back below their usual share of the consumer. ”
The travel industry is seeing signs of renewed interest. Flight Center said in a separate statement that ticket sales from SA to London have tripled since last Thursday’s announcement that SA was being removed from the UK on the Red List.
“In the hours and Days after the announcement, the UK overtook Mauritius and Dubai as the most booked international travel destination for South Africans, “the company said.
” We have been inundated with requests to travel to the UK since the UK government’s long overdue announcement, Andrew Stark, MD of Flight Center Travel Group, said on Oct. 7. “Inquiries and bookings have skyrocketed.”
Most airline tickets were booked for departures in November and December, said Sue Garrett, general Proposal, Pricing and Marketing Manager at Flight Center.
“We appreciate that many of these bookings are for South Africans who are finally planning on over the December holidays and January to meet with family and friends. “
Due to the mutual business between South Africa and Great Britain, the dissolution of the Red List was also good news for SMEs and multinational companies Company firm.
“London has always been a popular route for both leisure and business travelers to South Africa, with Heathrow considered one of the best international airports for corporate traffic from South Africa. The fact that vaccinated South Africans can now travel freely to the UK, one of our top business destinations, is likely to boost business travel between the two countries significantly, ”said Oz Desai, GM Corporate Traveler.