By Reeza Isaacs – CEO Spar Group

For many South Africans, retail is defined by a simple everyday experience — walking into a store, paying for groceries and heading home with a shopping bag in hand.

What customers see, however, represents only a small part of a far larger and highly coordinated system operating behind the scenes.

Every item on a supermarket shelf is supported by a broad network of workers spread across farms, factories, warehouses, transport fleets and retail outlets, all working together to keep products available and affordable.

Beyond the visible activity inside stores lies what can be described as retail’s hidden economy — an extensive but often overlooked system that quietly keeps the country’s commercial activity moving.

Because much of this work happens out of public view, the contribution of thousands of workers across the value chain is frequently underestimated.

Focusing solely on the in-store shopping experience risks ignoring retail’s wider economic role as a driver of supply chains, employment and participation across multiple industries.

When the broader system is overlooked, so too is its true scale and the importance of the people who sustain it.

In South Africa, where economic inequality and unemployment remain pressing challenges, understanding the broader role of retail becomes even more significant.

Recent economic indicators continue to show stubbornly high unemployment levels, especially among younger South Africans, alongside growing dependence on informal and survival-based economic activity.

According to The SPAR Group, supporting workers and creating economic opportunities remains central to its long-term strategy.

During 2024, the retailer strengthened its remuneration framework by implementing a formal fair pay policy aimed at promoting living wages, fair compensation and market-related salaries.

The company also began rolling out the first phase of its living wage programme in 2025, with full implementation expected over two years.

Alongside remuneration initiatives, SPAR continues to invest in employee training and development programmes focused on leadership, supply chain skills and youth employment opportunities through initiatives such as YES and JumpStart.

The retailer said employment creation must be paired with opportunities for advancement and long-term career mobility.

The group is also expanding its Retail Academy programmes, designed to develop skilled retailers and accelerate B-BBEE ownership opportunities throughout its network.

This support extends beyond its own operations through collaborations with retailers, industry bodies and SETA-aligned partners that provide structured training, learnerships and workplace experience.

In 2025, SPAR invested around R14 million into supplier development programmes, supporting smaller producers through its Supplier Development Hub. The initiative reportedly achieved full farmer profitability and retention.

The retailer said these initiatives form part of a broader effort to strengthen livelihoods, improve economic participation and reinforce the resilience of the wider retail ecosystem.

In this environment, retail serves as more than just a commercial sector. It also acts as one of the country’s most accessible gateways into the formal economy.

The industry supports participation across a broad network that includes farmers, suppliers, transport operators, merchandisers, independent retailers and in-store employees.

What appears to customers as a straightforward purchase is in reality the end result of a continuous 24-hour supply chain involving multiple layers of coordination.

Long before products arrive in stores, farm workers harvest crops, packhouses prepare produce, suppliers coordinate volumes, warehouses distribute stock and logistics teams ensure deliveries reach retailers across the country.

This process operates continuously, including weekends and public holidays, with each stage relying heavily on the next.

At SPAR, this interconnected system is supported through a structure that combines independent retail ownership with centralised wholesale and distribution operations.

The company said its retailers play a critical role within their local communities, overseeing store operations, employment and customer service while being supported by SPAR’s supply chain systems, operational standards and food safety frameworks.

Together, these systems help connect national supply chains to local communities, ensuring products move efficiently from producers to consumers.

The model also creates opportunities for entry into the formal economy.

Through programmes such as its Rural Hub initiative, SPAR works with emerging farmers to help them access formal retail markets, supporting long-term growth and sustainability for smaller producers.

The retailer said these connections are essential to building a more inclusive South African economy.

At the same time, the stability of the retail supply chain is becoming increasingly important as businesses contend with infrastructure pressures, logistics disruptions and rising operating costs.

According to SPAR, the systems supporting retail should not simply be viewed as operational structures, but as critical economic lifelines.

Looking beyond the checkout counter highlights the extensive network of workers, suppliers and partnerships that make daily retail activity possible — many of whom operate outside the public spotlight despite their essential role in keeping the economy functioning.

Ultimately, recognising retail’s hidden economy is about more than acknowledgement. It is about understanding how livelihoods are created, how economic participation is enabled and how interconnected systems sustain communities across South Africa.

Some of the country’s most significant economic contributions, the retailer noted, often

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