What price cheap goods? Survivalists, informalists and competition in the township retail grocery trade

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dc.contributor.authorPetersen, Leif
dc.contributor.authorThorogood, Camilla
dc.contributor.authorCharman, Andrew
dc.contributor.authorDu Toit, Andries
dc.date.accessioned2019-09-30T13:41:43Z
dc.date.available2019-09-30T13:41:43Z
dc.date.issued2019-08-31
dc.descriptionSpaza shops are important businesses within the township economy, contributing towards food security, self-employment and community cohesion. In the last decade, the sector has undergone extensive change with the emergence of a new class of entrepreneurial traders in the business – mostly foreign nationals. This change has become increasingly controversial and associated with chauvinistic and xenophobic discourses targeting immigrants. Yet on many levels – product range, operational hours and pricing – these new spaza shops can offer a superior customer experience than their South African predecessors. However, the oft-considered notion that their operators represent ‘better entrepreneurs’ who outcompete undynamic South Africans is both misleading and dangerous.en_US
dc.description.abstractAbout 54% of South Africa’s township microenterprises trade in food or drink. More than two-thirds of these are grocery retail businesses in the form of spaza shops and smaller ‘house shops’. These are the predominant businesses within the ‘township economy’ and play an important role in food security, self-employment and community cohesion. In the last decade, the business of spaza shops (dedicated, signposted businesses with a range of foodstuffs and open five days per week or more) has undergone extensive change towards a new class of entrepreneurial traders – mostly foreign nationals. This change has meant that the sector has become increasingly controversial and associated with chauvinistic and xenophobic discourses targeting immigrants. While the nature, causes and extent of change in informal grocery retail markets have been noted by various authors over the past decade, there is as yet no comprehensive account of the changing nature of business dynamics and competitiveness in the sector.en_US
dc.description.sponsorshipSustainable Livelihoods Foundation NPC, Institute for Poverty, Land and Agrarian Studies and, Competition Commission of South Africa, Economics of Tobacco Control Project, National Research Foundation and Centre of Excellence in Food Securityen_US
dc.identifier.citationPetersen, L., Thorogood, C., Charman, A., and Du Toit, A. 2019. “What Price Cheap Goods? Survivalists, informalists and competition in the township retail grocery trade.” Working Paper No. 59. Institute for Poverty, Land and Agrarian Studies, University of the Western Cape, Bellville, South Africa.en_US
dc.identifier.urihttp://hdl.handle.net/10566/4870
dc.language.isoenen_US
dc.publisherPLAASen_US
dc.relation.ispartofseriesWorking Paper;59
dc.subjectInformal sectoren_US
dc.subjectInformal tradersen_US
dc.subjectSpaza shopen_US
dc.subjectTownship retailen_US
dc.titleWhat price cheap goods? Survivalists, informalists and competition in the township retail grocery tradeen_US
dc.typeWorking Paperen_US

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