Egypt’s consumers are adjusting to a new status-quo two years after devaluation
Consumer confidence in Egypt fell by three points q-o-q to a reading of 80 on Nielsen’s Global Consumer Confidence Index for 2Q2018. Egypt and South Africa are the only two countries in the Middle East and Africa to see their consumer confidence readings decline, according to the index, which measures economic optimism.
But, when compared to Egypt’s reading post-EGP float, consumer confidence has largely stabilized on the back of slower inflation and adjusted spending habits, said the Arabian Marketer. The current level of confidence is an increase of 16 basis points since 1Q2016 as the dust from the float settles. Demand still exists, but it’s the patterns that have changed: Consumers are now increasingly adopting a “zero-waste” mindset.
Shoppers in Egypt have been gradually shifting away from the discounter segment and towards brand loyalty. Rather than always going for the cheaper options, they look to limit waste through restocking pantries at more frequent intervals, and waiting for longer intervals before larger grocery trips. Monthly supermarket visits are down to an average of three this year (from a previous four), and hypermarket visits to one (from two). Consumers are also increasingly paying for goods in installments.