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South Africa’s hidden retail economy

by Index Investing News
May 10, 2026
in Opinion
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Reeza Isaacs|Published 2 weeks ago

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For most South Africans, retail is experienced in a single, visible moment: a quick trip to the store, a transaction at the till, a bag of essentials carried home.

Yet what we see in-store is only the tip of a much larger system.

Behind every product on the shelf is a complex, coordinated ecosystem of people working across farms, factories, warehouses, trucks and shop floors to ensure that goods are available, accessible and affordable.

There is another dimension of work that deserves greater attention – the vast, largely unseen network of people who keep the country’s retail system functioning every day. 

This is retail’s ‘hidden economy’ – a system that operates seamlessly in the background yet underpins how our broader economy functions. 

This invisibility has real consequences.

When we focus only on what happens in-store, we risk undervaluing the thousands of workers whose roles are less visible but no less critical.

We also overlook retail’s broader economic function – not just as a point of sale, but as a connector of supply chains, a creator of livelihoods and a driver of participation across multiple sectors.

When we don’t see the system, we underestimate its scale, misunderstand how it works, and undervalue the people within it.

In South Africa, where economic inclusion remains uneven, this matters even more. 

Recent economic data continues to highlight the structural challenges we face persistently high unemployment, particularly among young people, and a growing reliance on informal or survivalist forms of economic activity.

At SPAR, our commitment to people is deliberate. In 2024, we strengthened our approach to fair and responsible remuneration, including adopting a formal fair pay policy which details the Group’s approach towards paying a living wage, fair wage and market-related competitive salaries.

The Group implemented the first phase of its living wage initiative in 2025, to be completed over a two-year period. 

We continue to invest in skills development and career programmes, including leadership, supply chain, and youth employment initiatives like YES and JumpStart, recognising that employment must be supported by clear pathways for growth and mobility.

We are also investing in structured retail development programmes through our Retail Academy, to build a sustainable pipeline of skilled, empowered retailers and fast-track B-BBEE ownership across the network.

This extends across our broader ecosystem, where we work with retailers, industry bodies and SETA-aligned partners to deliver structured training, learnerships and workplace experience.

In 2025, we invested approximately R14 million in supplier development, supporting small-scale producers through our Supplier Development Hub, which has achieved 100% farmer profitability and retention. 

These are not standalone interventions; they are part of a larger effort to build capability, improve livelihoods and strengthen the resilience of the retail system as a whole.

In this context, retail is not just a sector; it is one of the most accessible entry points into the economy.

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

What looks like a single interaction is, in reality, the endpoint of a 24-hour economic network, reflecting the coordinated effort of an entire value chain working in sync.

Long before a customer enters a store, farm workers have harvested produce, packhouses have graded it, suppliers have coordinated volumes, distribution centres have moved stock across regions, and logistics teams have ensured delivery to stores.

This system does not pause for weekends or public holidays. It is constant, interdependent and largely invisible. 

At SPAR, this interconnected system is supported by a model that combines independent retail with centralised wholesale and distribution.

SPAR retailers are not simply endpoints in the supply chain; they are critical participants in local economies, responsible for how stores are run, how people are employed and how communities are served – supported by SPAR’s supply chain, standards and food safety frameworks.

Together, this forms part of a broader network that enables goods to move efficiently from producers to communities. It is this balance that helps translate national supply chains into everyday access at a local level. 

It also creates pathways into the formal economy.

Through initiatives such as our Rural Hub programme, we work with small-scale farmers to help them access formal retail markets – an important step in unlocking growth and sustainability for emerging producers. These linkages are essential if South Africa is to build a more inclusive economy. 

Importantly, the resilience of this system cannot be taken for granted. In an environment where supply chain stability has become a national concern – shaped by infrastructure constraints, logistics challenges and rising input costs – the networks that underpin retail are increasingly vital.

They are not just operational systems; they are economic lifelines.

Looking beyond the checkout counter allows us to recognise the full spectrum of people and partnerships that make everyday retail possible – particularly those whose contributions are not always visible but are essential to keeping the system moving. 

Recognising this hidden economy is not simply about acknowledgement; it is about understanding how economic participation happens. Retail is not just a point of sale – it is a system that connects, enables and sustains livelihoods across the economy. 

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

Reeza Isaacs, CEO: The SPAR Group.

Follow Business Report on Facebook, X and on LinkedIn for the latest Business and tech news.

BUSINESS REPORT 



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