How investing in underserved communities can strengthen retail growth

Investing in South Africa’s underserved townships and rural communities can strengthen retail growth by expanding access to customers, developing local suppliers and creating employment. When these investments respond to real community needs, they support local economies while building stronger supply chains, broader market reach and long-term customer relationships.

These investments extend beyond corporate social responsibility (CSR). They create shared value, connecting local producers to markets, improving access to essential goods and building customer relationships that support long-term commercial growth.

Unlocking economic potential

Underserved communities are active economies with established businesses, local producers and everyday consumer demand. The opportunity lies in addressing gaps in access, affordability and convenience through products and services that reflect local needs.

For retailers, this means looking beyond store expansion to the wider network of suppliers, employees and delivery partners that makes local commerce possible.

“Growth can no longer be measured solely by expansion into established, saturated markets. Integrating low-income consumer segments and informal producers into formal value chains transforms transactional commerce into resilient, inclusive economic stewardship,” says Phumlani Dyini, Group Executive for Risk, Governance, and Sustainability at The SPAR Group.

Strengthening local supply chains

When retailers invest in local suppliers, the economic benefits can extend well beyond store walls.

SPAR’s Supplier Development Hub helps small-scale farmers build production capacity and access formal retail markets. The programme has been backed by more than R44 million in joint investment, supporting farmers cultivating more than 61 hectares, with produce supplied to SPAR regional distribution centres and stores within a 200 km radius.

The programme supported 12 farmers and contributed to the creation of 218 jobs in 2025.

Individual farmers demonstrate what market access can make possible. Rural Hub farmer, Nomsa Ngwenya supplies more than 52 tonnes of cocktail tomatoes annually to the market through its Mopani Hub. The Rural Hub Programme helped her increase production and transport produce to market.

For farmers, this creates opportunities to build commercially sustainable businesses. For retailers, it broadens the supplier base and strengthens access to locally produced food.

Creating jobs and developing skills

Retail investment also provides routes into employment and opportunities to develop practical skills.

SPAR’s participation in the YES 4 Youth initiative has created more than 4,000 work opportunities since 2019 across stores, distribution centres, offices and warehouses. These placements give young people workplace experience that can improve their prospects of securing future employment.

Individual store investments can deliver immediate local benefits. In July 2026, The SPAR Group’s newly launched SaveMor store had created 36 jobs, following funding through a partnership involving The SPAR Group and MSKH Consulting.

Together, these initiatives illustrate how retail investment can support both business operations and local livelihoods.

Reducing the cost of accessing groceries

For households managing tight budgets, affordability includes the cost of getting to the store. For the lowest-income 10% of South African households, food accounts for 40% of total expenditure. This makes the broader cost of shopping particularly important.

Through partnerships with KasiD in Tembisa and Delivery Ka Speed in Mamelodi and Hammanskraal, SPAR has extended access to SPAR2U home delivery in communities underserved by these services.

Customers are pooling grocery orders with neighbours and sharing delivery costs, with savings on travel redirected to food purchases. For customers, this offers a practical way to save time and manage shopping costs. For businesses, partnerships with local delivery providers can help reach more households while supporting local enterprises.

Building loyalty through everyday value

The strongest customer relationships are built through consistent, useful actions, including reliable service, relevant products, accessible shopping and a visible commitment to the community.

Supporting local suppliers and creating work opportunities can reinforce those relationships, particularly when customers experience the benefits directly. That commitment must sit alongside competitive value and dependable operations.

For retailers, understanding local needs helps inform decisions about product ranges, staffing and services. It also creates opportunities to earn repeat business by making everyday shopping easier and more relevant.

Investing in long-term growth

The commercial case for investing in underserved communities is rooted in participation, which means helping more producers access markets, more people gain work experience, and more households access essential goods conveniently.

Achieving this requires commercially viable operations, sustained partnerships and investment that respond to local demand.

SPAR’s experience illustrates how community development can be integrated into the way business sources, employs and serves. Thriving communities help build thriving businesses -and businesses that invest in local opportunities can strengthen the foundations of their own growth.