South Africa’s wholesale and retail sector is one of the country’s largest employers, spanning everything from small spaza shops and family-owned stores to major chains like Shoprite, Pick n Pay, Woolworths, Spar, and Massmart. It contributes significantly to GDP and serves as a bellwether for consumer spending, which in turn reflects economic confidence. Yet, while the sector provides a critical entry point for millions of workers, especially youth and women, it is also characterized by low wages, high turnover, and vulnerability to economic downturns.

The Wholesale and Retail SETA (W&RSETA) plays a central role in shaping this sector’s workforce development. Its mandate is to ensure that training is relevant to the needs of employers and workers while also addressing unemployment and skills mismatches. Funded through the Skills Development Levy, W&RSETA channels resources into accredited training, learnerships, and skills development programmes that align with the National Skills Development Plan (NSDP) 2030. Its purpose is to create a workforce that is both adaptable to rapid technological change and resilient against unemployment and retrenchments.

Currently, the sector employs more than three million people, according to Stats SA, making it one of the largest sources of formal and informal work. The majority of jobs are at the lower end of the wage scale. This creates challenges in terms of poverty reduction and social mobility. In addition, shifts in consumer behavior driven by e-commerce, digital platforms, and automation are disrupting traditional retail models. Companies like Takealot and Checkers Sixty60 demonstrate how digital transformation is reshaping the sector. While these innovations create new job categories in logistics, IT, and digital marketing, they also threaten traditional cashier, sales assistant, and in-store roles.

Youth and women dominate this sector, especially in entry-level positions. This makes it a vital contributor to first-time employment. The risks of underemployment remain high with rising retrenchments in the formal retail sector, especially during periods of weak consumer demand, displaced workers often struggle to re-enter the labour market without access to retraining. SMEs and informal retailers play a critical role here. Spaza shops and township-based supermarkets are vital for community-level employment, but they face intense competition from large chains and rising input costs.

Employers report skill shortages in areas such as supply chain management, retail analytics, merchandising, and e-commerce platforms. As South Africa’s retail sector globalises, with foreign chains like Amazon entering the market, workers will require higher levels of digital literacy, adaptability, and entrepreneurial thinking.

Looking forward, there is an urgent need to balance traditional retail jobs with new opportunities in the digital economy. Training in logistics, data analysis, digital sales, and customer experience can open new career pathways for unemployed youth. For SMEs, business incubation support and market access initiatives are crucial. With stronger linkages between training institutions, W&RSETA, and employers, the sector can move from a cycle of precarious employment to one of sustainable job creation.

South Africa’s retail sector holds immense potential for inclusive growth if it is reshaped to balance the needs of workers, SMEs, and the digital economy. The sector must become more than a gateway to low-paying work; it should be a platform for career development, entrepreneurship, and social mobility. Retail is where many South Africans experience their first job, it must not be where their careers stagnate.

Questions for the Future

How can retail workers be reskilled for opportunities in e-commerce, logistics, and digital supply chains?

What policies are needed to protect SMEs and informal retailers while ensuring they remain competitive in the face of large chains and online platforms?

How can retrenched workers in retail be redirected into adjacent sectors such as logistics, warehousing, and digital marketing?