How Immigrant Shopkeepers in Johannesburg Townships Succeed: A Customer's Eye View

Abstract

In the face of struggling native-owned informal grocery businesses, immigrant-owned shops in Johannesburg townships have demonstrated remarkable success. While research on this topic has been primarily informed by shopkeeper data, this article explores the phenomenon from the viewpoint of customers. Given that customers play a significant role in facilitating the success of businesses, the dearth of a customer perspective of the success of immigrant shopkeepers presents a gap in knowledge. This study addresses this gap by investigating the interaction between shopkeepers and customers from the perspective of customers. Drawing on the theories of customer value and customer satisfaction, the author proposes that customers prefer to patronize immigrant shopkeepers due to the considerable value they provide. The study was conducted in the Johannesburg township of Alexandra and involved the collection of cross-sectional quantitative data from 400 households. The findings indicate that customers patronize immigrant-owned businesses due to the superior value they receive, thereby enabling their success. This research highlights the importance of providing value to attract customers and contributes to the literature on the role of customers in informal business performance. Furthermore, the study sheds light on the contribution of customer reciprocation of shopkeeper value and has important implications for policymakers, business owners, and scholars alike. It underscores the need for a more nuanced understanding of the dynamics underlying the success of immigrant entrepreneurs in South Africa's informal retail sector.