Amid a challenging retail landscape, South Africa’s formal independent sector is quietly thriving, adapting and connecting suppliers with communities. While headlines often spotlight the corporate giants, a growing share of shoppers across all demographics and LSMs are increasingly shopping at formal independent wholesalers, hybrid and retail formats.
These stores, often part of independent networks, are no longer just a route to informal traders; they are primary shopping destinations for millions of households. According to Trade Intelligence, a third of all SA’s FMCG sales come from the formal independent trade, and the sector reported grew to R268bn in 2024, a sign of shopper trust.
As Jad Pereira, CEO of Unitrade Management Services, the largest voluntary trading group in South Africa, notes: “The independent formal market has really upscaled in terms of product, price, quality and shopping experience… they don’t just focus on the day’s deal, they focus on sustainability. They also keep prices down in communities by forcing corporates to compete.”
This shift is visible on the shop floor. Independents have evolved beyond offering competitive deals to delivering a full-scale retail experience. From sharper store layouts and improved visual merchandising to in-store training and stronger customer service, many independents now rival and in some cases outperform their corporate counterparts. Crucially, they have agility on their side. “They can change tomorrow, whereas the larger, more cumbersome groups can’t,” says Pereira. That agility means they can refresh formats overnight, adapt pack sizes to cater to both bulk traders and households, or pivot pricing strategies in line with shopper demand.
In the formal independent retail sector, store owners actively inspire and challenge each other, creating a cycle of healthy competition that drives continuous improvement and innovation. When one independent launches a modern, well-designed store or introduces a unique product range, peers take notice and are motivated to elevate their own operations. This dynamic encourages experimentation with new offerings, upgrades to store layouts, enhanced customer service and more agile business practices.
The sector’s supply chain role is equally critical. Formal independents act as a lifeline between suppliers and the informal market, from midi-wholesalers and tuck shops to schools. They also open doors for smaller suppliers and farmers who struggle to scale into corporate chains. For FMCG brands, they’re a fertile ground for growth, offering freedom for activations and in-store visibility. As Pereira points out, independents give suppliers “virtually free rein” to execute. Stores are buzzing hubs of activity, fiercely focused on localisation and curating products that truly cater to the tastes and needs of their communities. They go all out to secure the best prices for their shoppers, skillfully negotiating with suppliers to deliver unbeatable value. These retailers are constantly reaching out to traders with promotions, wheeling and dealing with agility to seize every opportunity. It’s a fast-paced, dynamic world where innovation, competitiveness and community connection come together to create a retail experience that’s clever and customer-focused.
The Formal Independent trade continues to prove its value beyond retail shelves too, playing a vital role in uplifting the communities it serves. From Bibi’s FOODTOWN Cash and Carry proudly winning the Independent Grocers Association South Africa International Retailer of the Year Award, to Food Lover’s Market formalising its purpose around ‘Changing Lives’ in its Earth Lovers Report, these retailers are demonstrating both resilience and social responsibility. Unitrade Management Services (UMS) has gone further by sponsoring initiatives such as LIV Village, while Big Save has created unique platforms like Big Save Got Talent - Yama 2k (sponsored by Rhodes Quality), turning stores into spaces where communities are celebrated, empowered and inspired.
Despite operating against a backdrop of 42% unemployment and high crime, independents remain confident in their growth. The mindset is clear: if they can succeed in the toughest conditions, the upside in a recovering economy is enormous.
But the road ahead isn’t without hurdles. Regulatory uncertainty around spaza shop registrations and informal trade could reshape the landscape. At the same time, suppliers often regard independents as a secondary channel, despite their proven strength. Pereira’s challenge to the industry is direct: “The cost of trading to a formal independent or to a corporate store should be equal… the gap is too wide. The call to action is clear… Suppliers, banks and service providers need to rebalance their strategies. Supporting independents is a proven route to deeper market penetration.
Independents are no longer playing catch-up – they’re steering retail in their own direction.