<\/p>\n
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.<\/p>\n
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.<\/p>\n
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There is another dimension of work that deserves greater attention \u2013 the vast, largely unseen network of people who keep the country\u2019s retail system functioning every day.<\/p>\n
This is retail\u2019s \u2018hidden economy\u2019 \u2013 a system that operates seamlessly in the background yet underpins how our broader economy functions.<\/p>\n
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\u2019s broader economic function \u2013 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.<\/p>\n
\nWhen we\u00a0don\u2019t\u00a0see the system, we underestimate its scale, misunderstand how it works, and undervalue the people within it.<\/p>\n<\/blockquote>\n
In South Africa, where economic inclusion\u00a0remains\u00a0uneven, this matters even more.<\/p>\n
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.<\/p>\n
Fair pay<\/strong><\/p>\n
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CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
In 2024, we strengthened our approach to fair and responsible remuneration, including adopting a formal fair pay policy which details the group\u2019s 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.<\/p>\n
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.<\/p>\n
Read:
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Spar starts retrenchment process to slash costs
Shock Spar CEO resignation<\/p>\nThis 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.<\/p>\n
These are not standalone interventions; they are part of a larger effort to build capability, improve livelihoods and strengthen the resilience of the retail\u00a0system as a whole.<\/p>\n
\nIn this context, retail is not just a sector; it is one of the most accessible entry points into the economy.<\/p>\n<\/blockquote>\n
It facilitates economic participation across a wide network of stakeholders \u2013 from small-scale farmers and local suppliers to logistics operators, merchandisers, drivers, independent retailers and store employees.<\/p>\n
Value-chain\u00a0<\/strong><\/p>\n
What looks like a single interaction is, in reality, the\u00a0endpoint of a 24-hour economic network, reflecting the coordinated effort of an entire value chain working\u00a0in 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\u00a0logistics\u00a0teams have ensured delivery to stores.<\/p>\n
This system does not pause for weekends or public holidays. It is constant,\u00a0interdependent\u00a0and\u00a0largely invisible.<\/p>\n
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Spar\u2019s incoming CFO is a former Woolworths director<\/p>\n\n\nADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
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 \u2013 supported by Spar\u2019s supply chain, standards and food safety frameworks.<\/p>\n
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.<\/p>\n
It also creates pathways into the formal economy. Through initiatives such as the group\u2019s Rural Hub programme, we work with small-scale farmers to help them access formal retail markets \u2013 an important step in unlocking growth and sustainability for emerging producers.<\/p>\n
\nThese linkages are essential if South Africa is to build a more inclusive economy.<\/p>\n<\/blockquote>\n
Importantly, the resilience of this system cannot be taken for granted. In an environment where supply chain stability has become a national concern \u2013 shaped by infrastructure constraints, logistics challenges and rising input costs \u2013 the networks that underpin retail are increasingly vital. They are not just operational systems; they are economic lifelines.<\/p>\n
Looking beyond the checkout counter allows us to recognise the full spectrum of people and partnerships that make\u00a0everyday\u00a0retail possible \u2013 particularly those whose contributions are not always visible but are essential to keeping the system moving.<\/p>\n
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 \u2013 it is a system that connects,\u00a0enables\u00a0and sustains livelihoods across the economy.<\/p>\n
Some of the most important contributions to South Africa\u2019s economy are not always the most visible.<\/p>\n
Reeza Isaacs is CEO of The Spar Group.<\/em><\/p>\n<\/p><\/div>\n
#hidden #side #South #Africas #retail #economy<\/p>\n","protected":false},"excerpt":{"rendered":"
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