Pick n Pay on Thursday said it would be opening its first-ever spaza-to-store pilot shop in Soweto this week.
Instead of putting up another supermarket in the township, the giant retailer is opting to try its luck in the informal retail trade sector by converting traditional spaza-shops into modern micro stores.
According to a 2016 report by consumer behaviour monitor, Nielsen South Africa, the informal or independent retail trade sector boasted R46 billion in annual sales, with more than 9 million households shopping in traditional trade stores.
The first of its kind, the Monageng Market store, is owned and run by a Soweto-born entrepreneur, Solly Legae and his family, and has traded in Diepkloof since 1972.
Pick n Pay worked with Legae on totally refurbishing his store, which would have up to 800 lines of edible and non-edible groceries as well as fresh produce and perishables.
Although it remains small, the store now boasts new refrigeration and IT systems, and also offers a full Value Added Service range, including ticketing, airtime, data, bill payments and the sale of prepaid electricity.
This pilot project forms part of the Gauteng Department of Economic Development’s (GDED) programme of economic revitalisation in townships.
Gauteng’s MEC for Economic Development, Environment, Agriculture and Rural Development Lebogang Maile said the work to revitalise the township economy was beginning to show results.
Group Executive for Franchise at Pick n Pay Chris Reed said in a statement on Thursday that “they are excited” about adapting strong elements of the Pick n Pay franchise model to support independent Small Medium and Micro-sized Enterprises (SMMEs) and to making a contribution to the economic revitalisation of township communities.
“Many independent township traders are experiencing tough times as the economy tightens and competition becomes more intense,” Reed said.
Based on the retailer’s franchise model, the pilot partnership includes access to Pick n Pay’s extensive range of branded products and purchase pricing, market advice, systems for ordering and managing stock, retail services including data, airtime and ticketing, as well as participating in the Smart Shopper loyalty scheme.
– African News Agency (ANA)
