The Underappreciated Component of South Africa’s Retail Industry

For numerous South Africans, retail is viewed as a simple and direct experience: a quick trip to the store, a purchase at the checkout, and a bag of essentials brought home. However, what we see in-store is only a small part of a much larger system.

Each item on the shelf is supported by a complex, coordinated network of people working across farms, factories, warehouses, trucks, and store floors, all dedicated to ensuring that products are available, accessible, and affordable.

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Another layer of effort deserves more recognition – the vast, mostly hidden network of individuals who keep the nation’s retail structure operational on a daily basis.

This is what we call retail’s ‘hidden economy’ – a system that functions seamlessly behind the scenes while underpinning the overall operation of our economy.

This invisibility carries significant consequences. By focusing solely on in-store activities, we risk underappreciating the countless workers whose contributions are vital, even if they are less visible. In doing so, we also neglect retail’s broader economic role – not merely as a sales outlet, but as an essential link in supply chains, a source of employment, and a catalyst for engagement across various sectors.

When we overlook the system, we underestimate its scale, misinterpret its functions, and undervalue the people involved.

In South Africa, where economic inclusion remains uneven, this understanding is even more crucial.

Recent economic indicators highlight the structural challenges we face: sustained high unemployment rates, particularly among the youth, and an increasing reliance on informal or survival-based economic activities. At Spar, our commitment to people is intentional.

Fair pay

In 2024, we strengthened our commitment to fair and responsible remuneration by introducing a formal fair pay policy that delineates the group’s approach to providing a living wage, fair wage, and competitive market-related salaries. The initial phase of our living wage initiative was launched in 2025, with completion anticipated over the next two years.

We continue to invest in skill development and career programs, including leadership, supply chain, and youth employment initiatives like YES and JumpStart, recognizing that employment must be paired with clear growth and mobility pathways. We are also focusing on structured retail development through our Retail Academy, aimed at creating a sustainable skilled workforce while enhancing B-BBEE ownership throughout the network.

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This commitment extends throughout our ecosystem, partnering with retailers, industry organizations, and Seta-aligned allies to provide structured training, learnerships, and workplace experiences. In 2025, we invested about R14 million in supplier development, assisting small-scale producers through our Supplier Development Hub, which has achieved 100% farmer profitability and retention.

These initiatives are not isolated; they are part of a broader effort to enhance capabilities, improve livelihoods, and strengthen the resilience of the retail system as a whole.

Within this framework, retail transcends mere industry; it acts as one of the most accessible gateways into the economy.

It facilitates economic participation across a wide variety of stakeholders – from small-scale farmers and local suppliers to logistics providers, merchandisers, drivers, independent retailers, and store employees.

Value-chain

What may seem like a standalone interaction is, in reality, the result of a 24-hour economic network that illustrates the collective effort of an entire value chain working in unison. Long before a customer steps into a store, farm workers have harvested produce, packhouses have sorted it, suppliers have arranged volumes, distribution centers have transported stock across regions, and logistics teams have ensured timely deliveries to stores.

This intricate system functions uninterrupted, regardless of weekends or public holidays. It is steadfast, interdependent, and largely hidden from view.

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At Spar, this interconnected framework is supported by a model that merges independent retail with centralized wholesale and distribution. Spar retailers are not merely endpoints in the supply chain; they play a critical role in local economies, influencing how stores operate, how people are employed, and how communities are served – all underpinned by Spar’s supply chain, standards, and food safety protocols.

This collectively forms a larger network that guarantees the efficient movement of goods from producers to communities. It is this balance that helps translate national supply chains into tangible access at the local level.

Furthermore, it opens pathways into the formal economy. Through initiatives like the group’s Rural Hub program, we assist small-scale farmers in entering formal retail markets – a key step in unlocking growth and sustainability for emerging producers.

These connections are essential if South Africa aims to nurture a more inclusive economy.

Significantly, the resilience of this network cannot be taken for granted. In a landscape where supply chain stability has become a national concern – influenced by infrastructure bottlenecks, logistical challenges, and rising input costs – the frameworks that support retail are growing increasingly crucial. They go beyond operational systems; they are lifelines for the economy.

Looking beyond the checkout counter allows us to appreciate the full spectrum of individuals and collaborations that facilitate everyday retail – particularly those whose contributions, though not always apparent, are vital for maintaining the flow of the system.

Recognizing this hidden economy extends beyond acknowledgment; it involves understanding the mechanisms of economic participation. Retail is not just a sales point – it is a thoroughfare that connects, empowers, and sustains livelihoods throughout the economy.

Some of the most significant contributions to South Africa’s economy are not always the most visible.

Reeza Isaacs is CEO of The Spar Group.