Spaza shops formed part of a R70 billion traditional trade (TT) sector in South Africa, which was far outperforming modern trade (MT) retailers in terms of annual growth.
This was among the findings in Nielsen’s 2017 annual Shopper Trends Study, which found that urban and rural TT formats accounted for more than R70 billion, or 22,3%, of total retail sales of about R316 billion per annum.
Nielsen’s consumer insights director, Esti Prinsloo, said that despite spend being still higher in MT, strong sales growth was coming through in TT, which comprised spaza shops, small independent grocers, self-service walk-in outlets, and countertop formats.
Spend in urban independents (mostly spaza stores) grew 13,4% in 2017, while rural outlets grew 2,3%. “Hypermarkets grew 4,8% and supermarkets 8,6%,” Prinsloo said.
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