Retail industry facts (Not fiction)

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The real reason the spaza industry was "lost" was because in the name of supply chain efficiencies, big manufacturers and retailers stopped dealing with smaller customers.

The largest beneficiaries of the evolution of the industry are South African owned businesses:
- Predominantly Indian families who makes up an independent wholesale sector (e.g Devland, Tradeport, Africa Cash and Carry)
- Van sales, logistics and distribution companies (Smollan)

The Competition Commission findings and recommendations have basically created the perfect conditions for anyone to access the same pricing as any customer if they order the same volume. To date, I'm not aware of many groupngs who are actively lookng to leverage this development.

Spaza shops(like many township businesses) don't run sustainable business models. It's not about who's running the business (local or foreigner) - they all cut corners, avoid taxes, underpay staff or do something to counter the impact of operating at low margins.

Most don't have sufficient store space to mix that gives them any chance of success.

Again the problem is structural and based on the dynamics of the value chain and how distribution happens.

The ways to restructure the industry are available and only require a change in mentality....