This was according to phase one of its first Township Monitor Index study conducted in a formal township (Soweto), semi-formal township (Diepsloot) and a rural township (Sebokeng), it said.
"The aim of the study was investigate the causes behind the collapse of township businesses, said Nafcoc economist Katleho Bohloa.
The study compared the prices of goods in large retail stores such as Pick n Pay or Shoprite Checkers, and even foreigner-owned retail shops. It found the spaza shops were the most expensive for products such as bread, milk and margarine.
The prices of fast-moving consumer goods were first compared at the end of the month and then again in the middle of the following month to analyse price differences during the different periods.
The prices in all the townships were relatively higher at the end of the month than during other periods.
The price differences between the two types of shops could be attributed to weak buying power.
"Spaza shop owners, unlike the foreign nationals and large retailers, do not buy in bulk and therefore do not achieve the same level of discounts from their suppliers," Bohloa said.
"Considering their sheer volumes, if spaza shop owners combined resources to do bulk-buying, they would achieve greater supplier discounts and become more competitive," he said.
The findings also showed that most spaza shops were located in residential areas, with home-owners turning parts of their houses into a 'spaza'.
Foreign-owned shops were mainly situated in busier locations such as taxi ranks, next to shopping malls or main roads.
The results showed that spaza shops had less brand variety than foreigner-owned shops and thus the price differential between different brands was lower.
Source: Sapa via I-Net Bridge
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