Woolworths emerged as the standout favourite after leading the pack with a Net Sentiment score 10.7 percentage points above the industry average.

BUSINESS

DataEQ has released its second South African Retail Sentiment Index, which sheds light on consumer sentiment towards the country’s top five leading grocery retailers.

The index, based on over 1.8 million social media posts, analysed sentiments surrounding Woolworths, Shoprite, Checkers, SPAR and Pick n Pay from 1 January to 31 December 2023.

The industry overall saw a positive shift, achieving an average Net Sentiment score of 8.8%, which is a notable 5.3 percentage point increase from the previous year.

The data shows a major increase in online conversations and engagement within the industry, rising from 1.6 million social media mentions in 2022 to 1.8 million in 2023. This was largely driven by a 180% increase in posts from the retailers themselves.

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Overall, all five retailers experienced year-on-year improvements in Net Sentiment, with Woolworths retaining its top spot. The Net Sentiment score is the real-time metric of customers’ perception of a brand or service.

Woolworths leads the pack

Woolworths – which is known for its discerning shoppers who value high-quality products, excellent customer service and a strong commitment to ethical and sustainable practices – emerged as the standout favourite after leading the pack with a Net Sentiment score 10.7 percentage points above the industry average.

Woolworths topped the Net Sentiment ranking

DataEQ revealed that the South African retail industry remains fiercely competitive, with retailers striving to attract and retain consumers who prioritise value for money and reliable customer service.

The index also highlighted areas where other retailers could improve. Retailers can provide value through pricing, customer service and quality products.

Poor customer service

Although customer service represents the smallest share of online conversation, some retailers faced more complaints than others. Data shows that Pick n Pay had the poorest customer service performance.

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Pick n Pay faced the highest proportion of complaints regarding turnaround time, staff competency and refunds/returns. Many of these grievances were linked to issues with Pick n Pay’s delivery app, ASAP! which negatively affected customers’ overall perceptions of the retailer.

Checkers experienced the least negative sentiment for customer service, thanks to improvements in turnaround times and response rates, particularly through enhanced experiences on the Sixty60 delivery app.

However, the index further noted an increase in complaints related to digital facilities, with issues such as slow delivery times, low stock and items nearing expiration affecting customer experiences.