As SA heads into what is expected to be its biggest festive retail season yet township retailers risk being left behind, not because of stock shortages or prices, but because customers simply cannot find them online, say digital visibility experts at Flood.
The township economy, valued at more than R900bn, supports nearly one-third of the country’s population and provides livelihoods for about 7.5-million people. Yet most township and informal retailers remain largely invisible in the digital marketplace, a gap that Flood said could cost them this holiday season as mobile-first shopping becomes the norm.
This year’s holiday shopping season is expected to set new records as consumers turn to mobile apps for convenience and real-time offers. According to Flood, digital visibility could make the difference between high turnover and missed opportunity, especially for township traders relying on walk-in traffic and word-of-mouth marketing.
“Informal and township retailers remain largely invisible online which, as the holiday retail quarter begins, is a challenge because this digital invisibility inhibits their ability to build and service their customer base. These retailers face a familiar dilemma — how do they serve their increasingly mobile-first customers when they are struggling to build their own digital presence?”
According to Mastercard, e-commerce, including mobile commerce, is expected to account for 10% of total retail sales by the end of 2025, exceeding R130bn. Mobile shopping is now the fastest-growing retail channel in the country, as consumers use their phones to search for deals, store hours and nearby outlets before making purchases.
But a FinMark study shows that about 60% of informal small, medium and micro enterprises operate at a “basic” level, with turnovers below R100,000 and limited digital adoption. Flood said many business owners own smartphones and bank accounts, yet still lack the means, infrastructure or technical knowledge to market themselves, promote offers or reach customers.
This lack of online presence has become more than a technological gap, it is a competitive disadvantage in a rapidly digitising retail landscape, it said.
“This growing exclusion is a very real problem in 2025. This year, the holiday shopping season will be mobile first as shoppers search for deals, store hours and location-based offers on their mobile devices,” the company said.
The informal sector does not need to be disrupted. It needs to be recognised.
— FinMark study
“As these behaviours accelerate, it is time for informal enterprises to gain access to the digital realm and resources that can transform their skills.
“The informal sector does not need to be disrupted. It needs to be recognised.”
Business Day previously reported that the independent wholesale and retail sector has emerged as a R268bn powerhouse driving the fast-moving consumer goods (FMCG) economy and serving as a vital link to the informal market.
According to Trade Intelligence’s latest Formal Independent Channel report, independents including wholesalers, hybrids, hypermarkets and supermarkets outside JSE-listed groups, now account for nearly a third of the national FMCG market, with 11% of households shopping in the sector.
About 95% of informal traders source their stock through independent wholesalers, underlining their critical role as the supply line for spazas, tuckshops and small traders. Many independents have evolved into supermarket-style destinations offering fresh produce, bakeries and butcheries alongside bulk goods.
In the face of weaker trade confidence and subdued consumer sentiment in the third quarter, analysts and industry leaders believe independents are well positioned for growth, with recent data from NielsenIQ showing traditional trade outlets, including spazas and independent superettes, outpacing corporate chains in both value and volume growth during the first half of 2025.
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