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New low-cost grocery store challenges big retailers in South Africa

| Store Openings

A new grocery concept named Skubu has launched in Diepsloot, Johannesburg, offering a fresh approach to shopping that undercuts prices at major retailers like Shoprite, Pick n Pay, and Checkers.

The store allows customers to bring their own containers and purchase food and household essentials in any quantity they can afford—addressing affordability and food waste in low-income communities.

The project is a collaboration between the Department of Science, Technology and Innovation, the Council for Scientific and Industrial Research (CSIR), and local tech firm Sonke (Pty) Ltd.

At the heart of Skubu are automated refill stations where shoppers can access basic goods such as rice, sugar, maize meal, cooking oil, and detergent. Prices are set per kilogram or litre, enabling buyers to purchase smaller amounts without paying inflated unit prices—a common problem when bulk buying isn't feasible.

For example, a kilogram of maize meal is priced at just R9, and half a kilogram of sugar sells for R10—often undercutting prices at large chain stores.

Customers have welcomed the model for both its affordability and flexibility. “With just R50, I can go to bed satisfied. Things are cheaper here,” one shopper commented.

As food prices continue to rise across the country, this model offers a lifeline. According to the Pietermaritzburg Economic Justice and Dignity (PMBEJD) group, the average cost of a household food basket reached R5,443.12 in June 2025—up 3.6% from last year and outpacing the 2.8% inflation rate.

The initiative aims not only to lower grocery bills but also to cut down on packaging waste. Designed by Sonke, the refill systems use digital tracking to monitor inventory from warehouse to shelf and eliminate the need for disposable packaging.

While shoppers may primarily be drawn by the prices, environmental considerations are baked into the concept. The project is supported by the Circular Economy Demonstration Fund, managed by the CSIR, which backs innovative business models that merge economic efficiency with sustainability.

Sonke’s founder, Eben de Jongh, said the technology enables products to be sold at up to half the cost of traditional stores. “Skubu is a fully automated store where people pay only for what they need, at rates they can manage,” he explained.

CSIR principal researcher Professor Linda Godfrey, who heads the Circular Innovation South Africa program, said the pilot serves as a real-world trial of how circular economy strategies can be applied at scale. “It’s also a model of public-private collaboration aimed at leveraging innovation for national development,” she said.

The CSIR supported the pilot by selecting the site, collecting and analyzing refill data, and assessing the project’s impact and sustainability over time.

Dr. Mmboneni Muofhe from the Department of Science, Technology and Innovation added that the effort is part of a broader initiative to combine environmental goals with economic empowerment at the community level.

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