How SA's independent retail sector became a R268bn powerhouse

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This sector is a critical supply line for informal traders and an increasingly attractive shopping destination for households.

Overall, the formal independent sector is made up of wholesalers, hybrids, hypermarkets and supermarkets that operate outside of JSE-listed corporate chains.

Trade Intelligence data shows that 11% of South African households shop in the sector – the same reach as Clicks, nearly four times Woolworths, and not far off Checkers at 18%.

With continuous investment in store layouts, merchandising and service, the old perception of ‘cash & carry’ as purely trader-focused is fading fast.

Hypers, hybrids and wholesalers – A vital link in the supply chain

A large portion of this channel is made up of wholesalers, hybrids, and hypermarkets.

Independent wholesalers (selling in bulk to businesses such as hospitality and informal traders) and hybrids (serving both traders and household shoppers) are a key route into the informal economy.

“Independent wholesale is key to the economy because it is the supply chain that feeds the informal market – from tuckshops and spazas to schools and midi-wholesalers,” says Jad Pereira, CEO of Unitrade Management Services (UMS), a network of independent wholesalers and retailers supporting more than 300 stores nationwide.

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“It’s been proven to be the most effective supply chain in the country, and corporates have tried it before without success.”

According to Trade Intelligence, 95% of informal traders source their stock through independent wholesalers, making the sector a vital enabler of entrepreneurship and employment.

A growing household shopping destination

Shoppers under economic pressure are increasingly turning to independent hypers and wholesalers for value, accelerating the rise of hybrids, which now make up 92% of the wholesale and hyper footprint. At the same time, independents are stepping into corporate retail territory with supermarket-style formats.

“Many independents now offer full fresh departments, bakeries and butcheries, alongside bulk ranges,” notes Andrea Slabber, insights lead at Trade Intelligence.

“They’re evolving into true one-stop destinations, which makes them more attractive not only to traders but also to everyday household shoppers.”

“Our [independent] retailers have upscaled dramatically,” says Pereira. “From product range to pricing, quality and store experience, they now rival and often outperform corporate stores. And because independents are agile, they can change formats, pack sizes or promotions overnight – something larger groups simply can’t do.”

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Agility, community and growth

That agility is matched by a deep local focus. Independents stock products from local farmers and smaller suppliers who cannot scale into corporate chains. They also invest in communities – from UMS’ backing of LIV Village to Kit Kat’s social development programmes and Tradeport’s school feeding schemes.

“The sector’s role is more than transactional,” Slabber adds. “It keeps prices competitive, creates access for emerging suppliers, and anchors communities with both jobs and social support. For brands, it’s also a channel where in-store activations and direct shopper engagement are easier to execute than in corporates.”

Looking ahead, Pereira is upbeat: “If we can be successful in an economy with 42% unemployment and high crime, just imagine the upside when conditions improve. Growth prospects for independents are massive.”

For suppliers, banks and service providers, the opportunity is clear. The independent channel offers scale, agility and access that few others can match. As Pereira puts it: “The cost of trading with an independent should be the same as trading with a corporate. Closing that gap will unlock even greater reach, and supporting independents is a direct route to deeper market penetration.”