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22seven users' spending on clothing increased at a faster rate than spending on groceries or general merchandise during the last quarter of 2022, compared to the same period in 2021. Overall, spending growth slowed towards the end of the year.Spending at clothing retailers increased 8.5% in the last quarter and 5.5% at grocery retailers. Spending at general merchandise retailers declined by 2%. The three-year trend in growth for each category is shown in the chart below and the data is adjusted to more accurately reflect contributions of lower-income households in the overall national economy, compared to the upper-income bias in the 22seven userbase. Insights’ estimates of spending growth have correlation coefficients between 57% and 76% compared to StatsSA retail sales figures for the corresponding categories, over the past three years.

Unlisted clothing retailers outperformed listed retailers in the final quarter of last year. This group includes companies such as CottonOn, H&M, Retailability (Edgars), Cape Union Mart and 125+ smaller retailers that are grouped within Other. Spending at major listed retailers MRP and Pepkor increased in line with total spending in the category. In general, Insights’ data indicates that listed retailers lost market share during 2022. Superbalist’s share of clothing spending decreased the most and online retailer Shein achieved the largest increase during 2022 [Shein's market share only declined in December, when all online retailers lost share].

The chart above showed that growth in total spending at retailers in the General Merchandise category slowed towards the end of 2022 and declined in the last quarter of 2022, compared to the year before.Within this group of retailers, Clicks and Dis-Chem gained market share in 2022, although we note a significant divergence in performance during the final quarter.Among other retailers in this category, the festive season brought seasonal gains for Toys R Us and The Crazy Store. 

Checkers again increased market share in 2022, although momentum shifted significantly in the final quarter. As this chart shows, the majority of the decline in market share can be attributed to Sixty60 and, upon deeper analysis, specifically to December – when spending on all online and digital channels is seasonally weak. It may therefore be too soon to suggest a sustained change in momentum for Checkers and we will review this important driver of market share gains for the retailer during the next couple of months. We believe the spike in Spar’s market share in the last quarter of 2022 is also seasonal, as Spar’s market share typically peaks in December – possibly due to the migration of consumers to Spar’s coastal stronghold. January will again be an important signal of whether this improving trend can be sustained. 

Stay ahead of the gameThat's it for Shop Talk this month. There are many more insights available from our spending dashboards, Please set up a time to discuss these in more detail to ensure you get the most from this unique data set. 

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