SA’s independent wholesale and retail sector has grown into a R268bn engine powering the fast-moving consumer goods (FMCG) economy, serving as an important enabler for the informal market and an increasingly important option for households.
That’s the main finding of Trade Intelligence’s latest “Formal Independent Channel” report, which notes that the sector comprising wholesale, hybrids, hypermarkets and supermarkets operating outside JSE-listed corporate chains now accounts for almost one-third of the country’s FMCG market.
Trade Intelligence data shows that 11% of the country’s households shop in the sector, putting its reach on par with the likes of Clicks, almost four times that of Woolworths and within striking distance of Checkers (18%.)
Critical supply line
Independent wholesalers are a critical supply line for the informal economy, with 95% of traders sourcing stock through them, according to Trade Intelligence.
“Independent wholesale is key to the economy because it is the supply chain that feeds the informal market — from tuck-shops and spazas to schools and midi-wholesalers,” said Jad Pereira, CEO of Unitrade Management Services, which supports more than 300 independent stores nationwide.
The report also shows that wholesalers serving traders and households now account for 92% of the channel’s footprint, indicating how independents are evolving into supermarket-style destinations.
Many independents now offer full fresh departments, bakeries and butcheries alongside bulk ranges. They’re becoming true one-stop shops for traders and households alike
— Andrea Slabber, insights lead at Trade Intelligence.
“Many independents now offer full fresh departments, bakeries and butcheries alongside bulk ranges. They’re becoming true one-stop shops for traders and households alike,” said Andrea Slabber, insights lead at Trade Intelligence.
The report comes as broader trade confidence weakens, with the mood among retailers and wholesalers falling sharply in the third quarter, according to the Bureau for Economic Research, suggesting consumer demand is easing after a period of steady growth.
Retail confidence dropped to 32% from 42% in the second quarter, slipping below the long-term average of 40% for the first time in a year. Wholesale confidence also fell, to 38% from 50%.
A recent report by consumer intelligence company NielsenIQ found that SA consumers are increasingly turning to traditional retail outlets, with spazas, independent superettes and taverns outpacing supermarkets and modern stores in the first half of 2025.
According to NielsenIQ’s most recent “State of the Retail Nation” report, traditional trade sales jumped 14.8% in value and 16.4% in volume compared with the same period last year, compared with 5.1% value and 2.1% volume growth in corporate chains and e-commerce.
Despite subdued sentiment, Pereira believes independents are well positioned.
“If we can be successful in an economy with 42% unemployment and high crime, just imagine the upside when conditions improve. Growth prospects for independents are huge,” he said.
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