Investigating the challenges for the development of independent retailers in South Africa

Abstract

Independent retailers face many challenges that influence their growth and development. Independent retailers are small businesses facing competition from major retailers in South Africa (SA) that have penetrated the townships and rural areas. The purpose of the study was to investigate the challenges that influence the development of independent retailers in SA. A survey was conducted among small independent retailers in SA. The convenience sampling method was adopted for the study due to the inaccessibility of a database on independent retailers in SA. Existing literature was used to design a questionnaire, targeted at small independent retailers, to investigate the challenges that influence their business performance. The findings of the study revealed that finance and marketing are the major challenges influencing the operations of small, independent retailers. Business-related challenges are the least challenging aspects for small independent retailers in SA. Independent retailers need to manage their businesses appropriately in order to survive and sustain their businesses. Independent retailers buy products from wholesalers while a few of them buy directly from manufacturers.