South African supermarket expansion in sub-Saharan Africa

Abstract

Supermarket expansion in the developing countries of the world has been conventionally led by ‘first tier’ transnational corporations (TNCs) based in the United States and Europe. The case of sub-Saharan Africa (SSA) presents an instance where supermarket expansion has been primarily propelled by ‘second tier’ TNCs, South African-based supermarket chains. In order to identify patterns and trends of South African supermarket expansion into SSA and the contribution thereof to creating dynamic shifts in the region’s agro-food systems, explorative research was undertaken based on grey literature sourced from company annual reports, sector databases and newspaper articles. Emerging patterns and trends of South African supermarket expansion reflect sub-regional variations within SSA and the integral role of modern import-based procurement systems in rolling out supermarket expansion across the region. Resistance to the imports driven model of South African supermarket expansion reflect a common trend among host markets within the SSA. The import-based expansion strategy of South African supermarkets in the region suggests emulation of the international neo-liberal model of food retailing and development, more generally. South African supermarket expansion is further problematised, given South Africa’s BRICs status, as ‘supermarketisation’ appears to facilitate the stronghold of TNCs in the region.