MONGEZI MTATI: The spaza shop is being reinvented

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How the once lowly community convenience store is influencing innovation within retail giants

01 August 2022 - 16:07The community grocery businesses that make up more than half of all township microenterprises have begun to reinvent themselves and now provide stiff competition to larger supermarkets. The 2022 Township CX Report surveyed close to 1,500 township residents across SA and yielded a host of interesting retail insights.

According to Luigi Ferrini, chief customer officer at Tiger Brands, on average a shopper buys 3.6 items per trip to a spaza, with an average spend of R65. Particularly interesting is that spaza pricing is competitive with the larger retailers and prices are comparable for everyday basics. Spaza owners run slick operations with collaborative buying and strong supply chain links with the mini-wholesalers that supply them. The next step is cultivating collaboration between retailers and suppliers to create more shared value for all. Spazas could undoubtedly enhance their competitiveness with larger stores by bringing down the price of staples such as maize and sugar. The best way to do this is to strengthen their buying power.

Source: Tech Daily Report (techdailyreport.net)

 

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