Over 25% of survey respondents stated that they spend over 50% of their income in the community or at spaza shops rather than supermarkets. As township residents face the daunting reality of food inflation, power cuts and increasing travel fees, spaza shops remain the heart and soul of the Kasi Economy.
In 2022, only 44% of respondents said they shopped at spaza shops, while in 2023, there has been a notable increase to 51%. With the increase in load shedding and extended periods of load reduction, people need to assess their shopping habits and turn to food that does not need refrigeration. Township residents have also turned to spaza shops to cut travel costs out of convenience.
Stephen Eyeson, CEO of Survery54, noted that in their shopper data, they are also seeing more frequent visits to spazas to buy smaller items with less freezer or fridge needs. Though this stems from a challenging economic state, it is also an opportunity for spaza shops to gain ground over larger supermarkets.
Overall, the Kasi Economy continues to be driven by convenience and support networks. This has also created a willingness for brands to support and work with local spaza shops.
Download the 2023 TCX Report and gain full insights into the Kasi Economy.
Need Assistance with Digital Strategy?
Rogerwilco’s team of strategists, business analysts and data scientists is here to help.
