Spaza
News’ target audience is
mainly township-based adults with very little or no formal knowledge of
business management. They have a basic level of education (most have
passed Grade 8 and above), and many of them were previously employed and
turned to the spaza shop market after losing their formal employment.
Their businesses are cash businesses, and they use the spazas to support
their families. They do not have business bank accounts and where they
do, it is often personal accounts as opposed to business accounts.
Spaza
shops owners are generally aged between 25 and 49 years old. One in
three spaza shop owners is a woman. And depending on where they operate,
they buy from local wholesalers or from formal shops in the bigger
centres. The majority of spaza shops turn over between R3 000 per month
and R10 000 per month.
According
to a recent Gemini survey, low-income spenders (who live in areas where
spaza shops and other informal retailers are located) believe that spaza
shops are inexpensive compared to other convenience stores such as
garage shops. "This could be because spaza shops typically buy from
cash and carries and only add on a small profit margin," says the
Gemini Consulting report.