JOHANNESBURG, South Africa ,South African consumers, battling relentless food inflation and a crippling cost of living crisis, are quickly turning to a radical new way of shopping that is undercutting major supermarkets by up to 50%. This “refill revolution,” centred around digitally enabled dispenser units in local informal shops, is challenging established giants like Shoprite, Pick n Pay, and Checkers, simultaneously tackling affordability and the country’s single-use plastic problem.

This shift comes as a new report highlights that nearly all South African shoppers have fundamentally changed their buying habits in response to economic pressures.

The Consumer Crisis Driving Innovation

South Africa’s consumers are drastically tightening their belts, driven by increased costs of living, load shedding, and slow economic growth. According to a recent consumer intelligence report, 99% of respondents have altered their shopping habits for Fast-Moving Consumer Goods (FMCG), often downgrading from premium products to mainstream or value options.

The findings show that 44% of consumers feel financially worse off compared to a year ago. For many, increasing food prices are the single biggest concern over the next six months. A worrying 55% report having just enough money to cover the bare basics, such as food and shelter.

In a bid to survive, South Africans are becoming “proactive and creative” in their saving strategies:

• Close to half (48%) have switched to lower-priced options.

• 45% have stopped buying certain products entirely, focusing only on essentials.

• Nearly half (48%) stock up or buy in bulk when products are on sale.

• 46% are shopping more often at discount or value stores.

Enter the Refill Revolution

The pressure on household budgets has created a fertile ground for innovators. A new grocery trend is quietly taking over South Africa’s formal independent retail: smart grocery refill dispensers.

Two key players are spearheading this shift: Smartfill and Skubu.

Smartfill: Powering Spaza Shops

Smartfill dispensers are rolling out across various spaza shops in areas like Tembisa, Johannesburg, and are specifically designed for the informal trade market.

This innovation was developed in South Africa by DY|DX and the Smollan Group. By cutting out single-use plastic and eliminating packaging costs, Smartfill enables customers to purchase trusted brands like Unilever’s Sunlight, B-Well, and Mielie King in the exact small quantities they can afford. This means that everyday items can cost significantly less up to 50% cheaper—than packaged goods bought in major supermarkets.

The model provides “affordability, dignity, convenience, and community,” allowing township residents, who often shop mid-month with as little as R20 or R50, to stretch their Rands further. Importantly, Smartfill aims to strengthen local township retailers by driving customer footfall into spaza shops, rather than competing with them. The success is already measurable: Smartfill has recorded over 30,000 transactions, with nearly 30% of customers returning daily to refill their containers. The model is so successful it is being piloted internationally in Bangladesh and Kenya, with expansion planned for Zambia.

Skubu: The Science-Backed Pilot

A similar concept, Skubu, has opened in Diepsloot, Johannesburg. Developed as a collaboration between the Department of Science, Technology and Innovation, the CSIR, and local tech company Sonke, Skubu uses fully automated refill stations.

Shoppers bring their own containers, filling up on staples like maize meal, sugar, rice, and detergent by weight or volume. Skubu claims its prices are up to 50% cheaper than traditional retailers. Sonke’s founder, Eben de Jongh, stated that Skubu allows people to buy the quantities they need at prices they can afford, enabling shoppers to go to bed “with a full stomach” even with just R50.

The initiative reflects a broader national effort to use technology for sustainable consumption while easing the pressure on financially struggling households.

The Growing Power of the Township Economy

These innovations are targeting an increasingly vital market. South Africa’s vibrant township economy has an estimated spending capacity of R900 billion. The “general trade” sector, which includes spaza shops, is responsible for 40% of the country’s FMCG purchases.

However, the connected township consumer is highly discerning and faces unique challenges:

1. Digital Divide: While 40% of township residents shopped online in the last 12 months (up from 28% in 2021), unreliable internet connectivity and expensive data remain major hurdles. In Limpopo and the Eastern Cape, a massive 81% and 69% of the population, respectively, still lack fibre access.

2. Trust and Counterfeit Concerns: Spaza shops are historically cornerstones of the community, but recent concerns over food poisoning and counterfeit goods have damaged trust. Consumers are seeking security, with 17% preferring SMS verification or inspecting product packaging to confirm authenticity before purchase.

3. Brand Engagement: Affordability remains paramount (59% cite price as key), but 24% emphasise the importance of being understood by the brands they support. Furthermore, digital engagement is crucial: 41% of consumers say a brand’s inactivity on social media severely or moderately undermines their confidence.

Brands aiming for loyalty must move beyond mere transactions and commit to authentic community development. When asked what projects they want brands to invest in, township residents overwhelmingly prioritised healthcare facilities/services (28%) and education and skills development (28%).

The growth of refill models like Smartfill and Skubu represents a powerful blend of technological innovation, sustainability, and immediate relief from the pressures of food inflation, signalling a fundamental shift in how millions of South Africans shop for their daily essentials