IN-DEPTH ANALYSIS
Rivalry rises as supermarkets eat into informal township economy
Large national chains are changing the way that business is conducted in the country’s high-density areas, to the detriment of small local retail players
Townships and peri-urban areas across the country are experiencing painful changes in the retail and consumer space. These neglected areas have become a battleground between small and independent retailers and national supermarket chains. As the big, formal players move into these once unwanted territories — changing fundamentally how business is conducted in those areas — there has often been tension between the new entrants and existing small and informal businesses. Townships house more than half of SA’s population, according to the World Bank. While income levels in these high-density areas are low, and unemployment is high, most households have access to or receive government grants. A recent study by think-tank Urban Landmark on the township economy found its populations are consumption-oriented, with many households spending a significant percentage of their income on food and beverages, clothing and footwear, electronics and furniture — making retail the foremost economic ac...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.