The Overlooked Aspect of South Africa’s Retail Sector

For many South Africans, retail is perceived as a single, straightforward experience: a brief visit to the shop, a purchase at the checkout, and a bag of necessities brought home. However, what we observe in-store represents merely a fraction of a much more extensive system.

Every item on the shelf is backed by a sophisticated, coordinated network of individuals operating across farms, factories, warehouses, trucks, and store floors, all working to ensure that products are available, accessible, and affordable.

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There exists another layer of work that warrants more recognition – the extensive, mostly hidden network of individuals who keep the nation’s retail framework functioning daily.

This is what we refer to as retail’s ‘hidden economy’ – a system that operates effortlessly behind the scenes while supporting the overall functionality of our economy.

This invisibility carries significant implications. By concentrating solely on in-store activities, we risk undervaluing the countless workers whose contributions, though less visible, remain vital. In doing so, we also ignore retail’s broader economic role – not merely as a sales point, but as a vital link in supply chains, a source of livelihoods, and a catalyst for engagement in various sectors.

When we overlook the system, we underestimate its magnitude, misinterpret its operations, and undervalue the people involved.

In South Africa, where economic inclusion is still uneven, this realization is even more critical.

Recent economic data underscores the structural hurdles we face: persistently high unemployment rates, particularly among youth, and an increasing dependence on informal or survival-based economic activities. At Spar, our dedication to people is intentional.

Fair pay

In 2024, we enhanced our commitment to fair and responsible compensation by implementing a formal fair pay policy that outlines the group’s approach to providing a living wage, fair wage, and competitively market-related salaries. The first phase of our living wage initiative was rolled out in 2025, with completion expected over the subsequent two years.

We continue to invest in skill development and career programs, including leadership, supply chain, and youth employment initiatives like YES and JumpStart, acknowledging that employment must be coupled 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 accelerating B-BBEE ownership throughout the network.

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

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

Within this framework, retail is not merely an industry; it serves as one of the most accessible gateways into the economy.

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

Value-chain

What seems like a solitary interaction is, in truth, the culmination of a 24-hour economic network that embodies the concerted effort of an entire value chain working harmoniously. Long before a customer steps into a store, farm laborers have harvested produce, packhouses have sorted it, suppliers have organized volumes, distribution centers have transported stock across regions, and logistics teams have guaranteed timely delivery to stores.

This intricate system operates continuously, unaffected by weekends or public holidays. It is unwavering, interdependent, and largely hidden from view.

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

This collectively forms a broader network that ensures efficient movement of goods from producers to communities. It is this equilibrium that helps translate national supply chains into practical access at the local level.

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

These connections are vital if South Africa aims to cultivate a more inclusive economy.

Crucially, the resilience of this network cannot be taken for granted. In a landscape where supply chain stability has emerged as a national concern – influenced by infrastructure bottlenecks, logistical hurdles, and escalating input costs – the frameworks that support retail are becoming increasingly essential. They transcend mere operational systems; they are lifelines for the economy.

Examining beyond the checkout counter enables us to appreciate the entire range of individuals and partnerships that facilitate everyday retail – especially those whose contributions, while not always visible, are crucial to maintaining the flow of the system.

Acknowledging this hidden economy goes beyond recognition; it encompasses understanding the mechanisms of economic participation. Retail is not just a sales point – it is a system that connects, empowers, and supports livelihoods throughout the economy.

Some of the most significant contributions to South Africa’s economy aren’t always the most evident.

Reeza Isaacs is CEO of The Spar Group.