While the rand has made some gains against the US dollar and there has been a 2,3% rise in retail trade, indicating a small but important jump in household and consumer spending, 72% of consumers remain under the financial whip thanks to the 7% repo rate, 10,5% prime lending rate and oscillating fuel price at the pumps.
This is according to the new 2026 South African Customer Experience Report.
Almost three quarters of those surveyed in Q2 of 2026 report that their financial position has either stagnated or deteriorated over the past year leading them to buy from brands whose customer-facing support (physical or virtual) helps them find the best discounts and deals – yet just 7% of business leaders prioritise this opportunity.
Considering that 75% of household budgets go towards primary needs and credit use is at an all-time high, consumers remain in a tight spot.
Produced by co-authors Rogerwilco’s CEO Charlie Stewart, ovatoyou’s founding director Amanda Reekie and Julia Ahlfeldt from Julia Ahlfeldt CX Consulting, the CX Report is based on responses from 2 000 online consumers and 56 business leaders. The annual report highlights how consumers are spending their money and increasingly using tech to help them do so.
AI helps consumers buy better
While consumers are far poorer this year than last, they are also far more empowered thanks to agentic AI search.
By using AI to compare products and prices, find deals and answer product or price-related questions (23%), 67% of consumers say that they are open to using AI to fill a shopping cart, order a meal online (62%) while over half would use AI to book travel or even make a medical appointment.
AI is no longer just a productivity tool – it is becoming a household budgeting tool.
Pick or switch
Findings from SpendTrend26, the latest consumer spending report from Discovery Bank and Visa, concur, with 40% of surveyed South Africans saying they now use AI tools weekly to help decide what to buy, where to buy it, or whether to buy at all.
In line with this, according to this year’s CX Report, 56% of those surveyed are buying house brands or no name products, 40% actively compare prices and 36% use search engines to find the best value.
Businesses make an own goal
“This year the standout insight is that businesses are facing a huge opportunity cost,” says Stewart. “Consumers’ and customers’ searching for value and better offers and deals are at an all time high, and want brands to help them find this to save money.
“The whopping 93% of business leaders who are ignoring this are making a massive own goal.”
Given consumer spending accounts for approximately 65% of the country’s GDP, boosting buying power by enabling consumers to cut costs while retaining quality is in everyone’s financial interest.
Consumers pick brands that boost purchasing power
“A case in point is Pick n Pay,” comments Ahlfeldt. “Its AI shopping companion Penny shows how businesses can use AI to empower, advise, guide, support, personalise and help customers use their hard-earned Rands to buy better from their choice of brands.”
It is interesting to note that Pick ‘n Pay made a surprising jump up the list in terms of good experiences this year after not having featured for a while. This is especially true for household income earners of less than R10 000 a month.
“It’s super interesting to see which brands consumers consider to be doing the best customer experience job. This finger on the pulse of who is winning, particularly in the retail and grocery space, provides a valuable wayfinder for other businesses to follow suit,” says Ahlfeldt.
The new CX rules
Innovation in AI is expected to increase, with consumers using agentic AI tools like ChatGPT, Perplexity and Gemini to help them shop better. Businesses that underestimate this new phenomenon will miss the mark, says Reekie.
“What is clear from this year’s research is that consumers have power in their pockets thanks to their smartphones and AI search. Businesses and brands must understand that. Consumers and customers are feeling the economic pinch and are doing the maths by using technology to hunt for discounts, deals, better prices and most importantly trust and value.”