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  • Business

    Why local government elections matter more to entrepreneurs

    Carmen Stevens launched Carmen Stevens Wines in 2011. Today the business is recognised as South Africa’s first 100% Black-owned and woman-owned winery.

    How SA’s first black woman winemaker conquered the global market

    Leane Hendricks is proving that South Africans can also run successful spaza shop businesses by starting small and serving their communities. Phone: supplied

    Woman entrepreneur proves locals can crack it in spaza sector

    Shop2Shop & Pay@ deal gives township traders new income stream

    Turkish Airlines will increase its South African services to 20 weekly flights from October 2026.  Photo. Turkish Airlines

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    Free State businesses want municipalities to act ahead of polls

    Sugar import surge threatens local growers and producers

    Entrepreneurs are turning second-hand clothing bales into income, with traders targeting busy community locations to reach customers looking for affordable winter wear.

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    The KwaZuluu Natal Department of Transport has sent in graders to remove snow from the roads after a heavy downpour on Tuesday. Photo. KZN Transport

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  • Agriculture
    Carmen Stevens launched Carmen Stevens Wines in 2011. Today the business is recognised as South Africa’s first 100% Black-owned and woman-owned winery.

    How SA’s first black woman winemaker conquered the global market

    The Eastern Cape has launched an R80 million grain commercialisation drive to support emerging farmers and expand commercial grain production.

Photo:wandilesihlobo.com

    Eastern Cape commits R80m to support emerging grain farmers

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    SME food operators reclaim margins as national pork prices drop

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    Emerging farmers urged toward commercial livestock production

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    Cape Town port backlog squeezes fruit farmers

    The Mpumalanga International Food Market has entered its commercial phase, with government hoping the R2 billion facility will improve market access for farmers, strengthen agricultural value chains and stimulate economic growth across the province.

    Politics overshadow promise as Mpumalanga Market opening stalls

    Zelda Masoga of Mazeli Farming in Limpopo is among a new generation of black commercial farmers rewriting past inequalities. Photo. Lucas Ledwaba\Mukurukuru Media

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  • Innovation
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    How Artificial Intelligence is helping SA small businesses grow

    How Google Cloud infrastructure expansion could benefit SMEs

    Oratile Sibanyoni is a young entrepreneur with a mission. Photo. Lorraine Mokhatla

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    A long wait for care at a hospital gave Sibongile Mongadi an idea for her business. Photo. Supplied

    Soweto creator redefines prosthetics through local manufacturing

    Innovator Tshepiso Malema has designed a digital solution to help farmers.

    Agritech platform brings digital precision to livestock farming

    Setšong Tea Crafters was able to overcome barriers that often keep rural enterprises out of mainstream retail channels. Photo. Lucas Ledwaba\Mukurukuru Media

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Photo: OLIVIER LE MOAL

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    Property sector warns rate hike could delay market recovery

    Naledzani Mosomane, Head of Enterprise and Supplier Development at Standard Bank South Africa, says the expanded Export Readiness Programme will help more SMEs become export-ready.
Photo: Supplied

    Standard Bank and DHL partner to expand SME exports

    Minister Stella Ndabeni Abrahams officiates the handover of a Caterpillar excavator to Mbalelanga Trading Enterprise under the Business Infrastructure Support Programme in Buffalo City Metropolitan Municipality.
Photo: DSBD

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    SME funding has improved access to finance through the partnership between Ozow and Lula.

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    Tourists visiting the Kruger National Park could soon be encouraged to explore Mozambique and Eswatini through the new TriLand regional tourism initiative.

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    South African Tourism Minister Patricia de Lille and Mauritian Tourism Minister Richard Duval during the signing of a tourism cooperation agreement at Africa’s Travel Indaba 2026 in Durban. Photo: DoT

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    Limpopo is positioning tourism infrastructure as part of a broader economic development strategy aimed at attracting investors. Photo. Lucas Ledwaba\Mukurukuru Media

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    The delegation from the province's five districts showcased accommodation, wellness services, cultural tourism and adventure experiences to both local and international buyers. Photo. Ledet

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  • Advertise
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    • All
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    Leane Hendricks is proving that South Africans can also run successful spaza shop businesses by starting small and serving their communities. Phone: supplied

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    A spaza owner sits outside his supermarket in Kliptown, Soweto. Photo: Nhlanhla Phillips

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    Naledzani Mosomane, Head of Enterprise and Supplier Development at Standard Bank South Africa, says the expanded Export Readiness Programme will help more SMEs become export-ready.
Photo: Supplied

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    Entrepreneurs should prepare financial records and plans as lenders assess credit, cash flow and repayment. Photo: finzway

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January spending squeeze tightens margins for township retailers

by Lazola Zuma
January 19, 2026
in Business, Resources, Top story, Township Policy & Government
Reading Time: 3 mins read
A A
Parents shop selectively for school essentials as rising costs reshape back-to-school spending.

Parents shop selectively for school essentials as rising costs reshape back-to-school spending.

January’s back-to-school season is once again placing pressure on small retailers, as rising education costs collide with constrained household budgets and aggressive pricing from national chains. While demand for uniforms and stationery remains steady, township retailers say the way parents are spending has shifted, making the period more financially demanding than previous years.

Retail analysts say the pattern reflects broader household pressure. Economist Thandi Mavuso said January spending is being shaped by weak disposable income growth. “Education costs are non-negotiable, but households are stretching payments across time. That directly affects small retailers’ cash flow,” she said.

Competition from national retail chains continues to weigh heavily on township businesses. Large retailers are offering bundled uniform deals, extended lay-by options and loyalty discounts that smaller traders struggle to match. While township shops benefit from convenience and proximity, they often absorb higher per-unit costs from wholesalers.

A stationery wholesaler supplying small shops in Gauteng said traders are ordering smaller quantities this year. “Retailers are cautious. They don’t want to overstock because January money moves slowly,” he said.

Uniform sellers and stationery traders report that customers are prioritising compulsory items while spreading purchases over several visits. This has slowed cash turnover at a time when small businesses rely on rapid sales to recover December stock investments.

A basic primary school uniform set now costs between R450 and R700 at township retailers, depending on fabric quality and supplier pricing. Stationery packs range from R250 to R500 for primary school learners, while high school packs can exceed R800 once calculators and specialised items are included. Retailers say these costs reflect higher fabric prices, transport expenses and electricity tariffs passed down the supply chain.

Soweto-based uniform trader Zanele Dlamini said parents are increasingly selective.

“Most customers start with shirts and trousers. Jerseys and blazers come later, if they come at all,” she said. “That means stock stays longer on the shelves.”

Stationery trader Kabelo Moeketsi in Tembisa said sales volumes are stable but transaction sizes have fallen. “People buy what the school checks first. Pens and books sell every day, but full packs move slower than before,” he said.

Parents confirm that back-to-school spending has become fragmented. Alexandra resident Thabiso Mokoena said households are forced to stagger purchases. “You can’t buy everything at once anymore. Transport, food and school fees come first, then uniforms,” he said.

Some small retailers are adapting by focusing on fast-moving essentials and reducing exposure to slower items. Others are renegotiating supplier terms to ease payment pressure during the first quarter of the year.

lazola@vutivibusiness.co.za

Tags: Back to schoolConsumer spendingEducation costsRetailTownship small businesses
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Lazola Zuma

Lazola Zuma

Lazola Zuma is a journalist at Vutivi Business News, where she covers business and agriculture stories with a focus on South Africa’s small and medium enterprises (SMEs). Passionate about telling stories that spotlight township and rural entrepreneurs, Lazola’s reporting explores how policy, finance, and innovation shape the daily realities of small businesses. In addition to her reporting role, she assists Vutivi’s social media team by creating engaging digital content that connects readers to the publication’s latest news. Outside the newsroom, Lazola is a content creator who shares beauty, lifestyle, and fashion content.

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