The Expansion of Regional Supermarket Chains: Changing Models of Retailing and the Implications for Local Supplier Capabilities in South Africa, Botswana, Zambia, and Zimbabwe

CCRED Working Paper No. 2015/17

WIDER Working Paper 2015/114

39 Pages Posted: 24 Feb 2017 Last revised: 3 Mar 2017

See all articles by Reena Das Nair

Reena Das Nair

Centre for Competition, Regulation & Economic Development (CCRED)

Shingie Dube

Centre for Competition, Regulation & Economic Development (CCRED)

Date Written: November 1, 2015

Abstract

Over the past two decades, southern African countries have experienced rapid growth in the number and spread of supermarkets. Several factors have been attributed to this growth, including increasing urbanization, increased per capita income, the rise of the middle class, economies of scale and scope, and transport economies. The format and location of supermarkets have also evolved over the years, moving away from serving the traditional high-end affluent consumers in urban areas to successfully penetrating new markets in low-income rural communities, including through more efficient procurement and distribution systems. This spread into rural areas and the rapid proliferation of supermarkets generally has given rise to some important consequences for competitive rivalry between grocery retail outlets, as well as for local suppliers who want to participate in supermarket value chains in the southern African region.

Keywords: supermarkets, southern Africa, regional development, strategy, suppliers, capabilities

JEL Classification: L1, L2, L22, O1

Suggested Citation

Das Nair, Reena and Dube, Shingie, The Expansion of Regional Supermarket Chains: Changing Models of Retailing and the Implications for Local Supplier Capabilities in South Africa, Botswana, Zambia, and Zimbabwe (November 1, 2015). WIDER Working Paper 2015/114. Available at SSRN: https://ssrn.com/abstract=2923047 or http://dx.doi.org/10.2139/ssrn.2923047

Reena Das Nair (Contact Author)

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Shingie Dube

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

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