Swazi Observer

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DECLINING SALES FORCING BUSINESSES TO RETHINK STRATEGIES

By Nomfanelo Maziya | 2025-01-08

The festive rush is losing its shine for many businesses, from street vendors to small enterprises.

From bustling marketplaces to the heart of shopping malls, the traditional surge in consumer spending that fuelled holiday cheer for businesses of all sizes seems to be fading.

While some in the Federation of Eswatini Business Community (FESBC) remained unconcerned, others viewed the changing landscape as a wake-up call.

“The traditional increase in consumer spending during the festive season is no longer a guaranteed phenomenon. People simply aren't buying as much as they used to," observed one businessman.

Another said, “This is not merely a slowdown; it's a fundamental change in consumer behaviour that demands a drastic rethinking of business strategies.”

However, FESBC Chief Executive Officer Benjamin Simelane, view this as good news pionting out that many businesses are embracing this challenge as an opportunity for reinvention.

“They are actively seeking innovative ways to connect with customers, exploring cost-effective marketing channels, and identifying new revenue streams to ensure their long-term sustainability,” said Simelane.

He noted that this period of uncertainty was forcing businesses to become more agile and adaptable.

“Most of our members were indifferent, however, new businesses said the festive season presented both challenges and learning opportunities,” said Simelane, highlighting that gone were the days of relying on seasonal spikes in demand.

Today's successful businesses must cultivate year-round customer loyalty, build strong brand identities and consistently deliver exceptional value propositions.

“With limited brand awareness and tight marketing budgets, the newer businesses focused on building relationships within their local markets. They participated in local markets and leveraged social media to spread the word,” said the ceo.

While sales were not as high as anticipated, the businesses gained valuable insights into consumer preferences and identified areas for improvement.

“The businesses are now refining their strategies to reach a wider audience and drive future growth,” he said.

Vendors
Mbabane street vendors, who offer a diverse range of goods from fresh produce to clothing, in the first week of December, reported a disappointing lack of customer activity, even during the traditionally lucrative festive season.

This decline in foot traffic was particularly perplexing, as the holiday period was typically a time of heightened consumer spending, with shoppers eager to purchase gifts, celebrate and stock up on essentials, according to interviewed vendors.

Eswatini has all long witnessed a surge in consumer spending during the festive season, with individuals often utilizing their annual savings and other income sources.

However, this year many vendors expressed concern over the lack of the anticipated buying frenzy.

Street vendors operating at the bustling Mbabane bus rank such as Delisile Msibi, shared their disappointment.

"We had anticipated a significant increase in customer numbers during the festive season, but that was not the case.

‘‘We usually witness more in sales during this time, but this year, it was different."
Zanele Dlamini, another vendor, echoed Msibi's concerns, stating that sales had remained stagnant.

"Even during Black Friday, we saw very little customer traffic at our stalls.
‘‘Despite the lack of specific Black Friday promotions, we expected to see a higher volume of customers given the increased foot traffic in town," observed Dlamini.

The festive season brought the much-needed boost to businesses across Eswatini, according to vendors interviewed by Eswatini TV days following the new year.

They said sales improved in the lead-up to Christmas and New Year, providing a welcome reprieve for many who had faced challenges earlier in the year.

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