THE SPAZA SHOP: SOUTH AFRICA′S FIRST OWN BLACK RETAILING INSTITUTION

The formal business sector in South Africa failed during the past decade to create new job opportunities. In fact it experienced a decline of approximately 20,000 job opportunities. Most people becoming unemployed experimented with some form of trading in the informal sector because of limited skills and knowledge required for informal trading. The spaza shop, a shop with limited floorspace operated from a residence in a black township, is a new retail form born out of these circumstances. Today spaza shops handle vast turnovers and their existence cannot be overlooked by companies marketing consumer products. The spaza shop has become a prominent member of the distribution channel within a short time. The reason for the acceptance and success of spaza shops is found in the essence of the marketing concept. Not only is it located near the consumer, but it also offers convenience in respect of trading hours, products offered, prices asked – all of which are aimed at need satisfaction. Spaza shops will remain a major force in retailing for many years to come.