What is Spaza Shop?
A spaza shop is an informal business that operates like a tuck shop. They can be seen as convenience stores that sell a wide variety of products.
A large number of spaza shops in South Africa are run from home whilst others are set up like large stores that almost look like mini supermarkets. Most spaza shops especially the ones that operate from home are family-run businesses.
Top Spaza Shops In South Africa
A spaza shop is an informal business that operates like a tuck shop. They can be seen as convenience stores that sell a wide variety of products.
A large number of spaza shops in South Africa are run from home whilst others are set up like large stores that almost look like mini supermarkets. Most spaza shops especially the ones that operate from home are family-run businesses.
The larger ones are sometimes registered companies that are formed by a group of individual investors. These shops are usually located close to people’s homes and offer convenience to the customers they serve. Some of the products found in spaza shops include beverages, alcohol, and ready-made food like kotas. The list of some of these products is briefly described below.
BEVERAGES
One of the many products sold at a spaza shop in South Africa are beverages. It is common to find alcohol, soft drinks fruit juices and mageu to name a few beverages. In fact, beverages are some of the core products sold at spaza shops. These beverages are both local and imported. Most spaza shops earn a lot from selling alcohol. There are some spaza shops that sell hot beverages such as tea and coffee to their customers in the morning.
BAKED GOODS
Another popular product on the food and beverages group sold at spaza shops is baked goods. You are most likely going to find homemade donuts, scones, buns, and sometimes pastries.
These products are convenient and quick, especially for students and professionals that have busy lives and prefer a quick snack or meal from a spaza shop.
CANNED FOODS
A spaza shop is a mini grocery store for many people. Most food products that are sold in supermarkets can be found in spaza shops.
Especially canned foods such as sardines baked goods and corned meat. Canned goods are products packaged in tin containers, such as tomato paste, sardines, canned sauces, and many other canned products.
Most food found in a spaza shop is convenient and quick to prepare. Canned products are also popular with a lot of spaza shops because they are affordable.
BASIC FOOD
Food products such as maize meal, pasta and rice can be found in South African spaza shops. Sugar, salt and many other essentials and household staples or basic groceries are sold in spaza shops. However, compared to other types of retail stores such products are sold at a slightly higher price.
The benefit of being able to buy any of these goods at any time of the day make the products a bit more expensive as spaza shop owners charge for the convenience they provide.
DAIRY PRODUCTS AND MEAT
Also on our list of spaza shop products are dairy products and all kinds of meat. Many spaza shops sell meat including beef, chicken, and dairy products such as milk and yogurt, to name a few.
Some spaza shop owners even source directly from farm owners in order to become the shop that supplies fresh products. Other products such as eggs or any food products you find in supermarkets is more than likely going to be sold at a spaza shop.
SWEETS AND SNACKS
A range of sweets and snacks including chips, chocolates, biltong, chewing gum, canned pudding, sweet cakes, and nuts are usually displayed at the front window of a spaza shop or right by the counter in an attractive and colorful way.
This is done to lure customers to buy these snacks and sweets whenever they come to purchase from the spaza shop.
PREPARED FOODS
In addition to the staples, sweets, and beverages spaza shops are known for selling prepared sandwiches, pastries, and readymade meals designed to appeal to customers who visit the store hungry.
Popular prepared meals sold at spaza shops is bunny chows and kotas. Kotas are so popular that there are spaza shops and franchises that strictly sell kotas nowadays. A lot of spaza shops’ income is from selling Kotas and alcohol.
PACKAGED PRODUCTS
Packaged products are also part of the products sold at a spaza. These packaged products comprise of packaged goods. They include bread, assorted biscuits, rice, maize meal, macaroni, and flour.
TOILETRIES
Spaza shop products include toiletries for the household. These toiletries include toothpaste, household detergents, soap, other cleaning chemicals, and bathing gels. Personal hygiene products such as wet wipes, feminine products, and lotions can be found at a spaza shop. Most of these products can be found at competitive prices in various spaza shops.
HAIR PRODUCTS
Products in this category include every item needed to keep the hair neat, such as: hair extensions, hair cream, hair relaxing creams shampoos, conditioners, and styling gels. Spaza shop owners understand the need for hair and beauty products and add them to their inventory. There is a large market for hair and beauty products given that these products are found in large supermarkets, salons, and even spaza shops.
OVER-THE-COUNTER MEDICATION
Over-the-counter medication can be found in many spaza shops. You can buy a range of over-the-counter medications including aspirin, cough medicine, lip balm, sinus medication, and throat lozenges.
COSMETICS
Body lotions, hair cream, deodorants, and make-up kits can be bought at spaza shops. Some spaza shops have become so large and have a wide range of products, you can find almost anything. Also, such products are in high demand which is why they can be found at many spaza shops.
How much can a spaza shop make in a day?
A spaza shop in a very busy area can be able to make around R1 000 – R6 000 on a daily basis.1
Do spaza shops pay tax in South Africa?
As such, spaza shops play a vital role in serving local communities as part of the informal economy. This segment does contribute to indirect taxes (Value-add Tax) through their purchasing from suppliers and direct taxes (Income Tax) on their income earned.