VukaUzenzele Supermarket
| Business Location: | Rural area - Farms |
| Province | Free State |
| Branch: | Xhariep |
| Business Start Date: | |
| Busniess Type: | Company |
Business Dynamics and Challenges
Business Activities:
1.Daily Operations
Selling groceries (bread, milk, sugar, tea, maize meal, etc.)
Stocking soft drinks, snacks, and fast food items
Providing household essentials (soap, toothpaste, matches, candles)
Selling prepaid airtime and mobile data vouchers
2. Customer Service & Sales
Assisting customers with product selection
Managing cash transactions and mobile payments (e.g., e-wallet, banking apps)
Handling customer inquiries and complaints
Offering credit to trusted customers (informal credit system)
3.Stock Management
Ordering stock from wholesalers and suppliers
Restocking shelves and refrigerators
Checking expiry dates and product quality
Keeping inventory records and monitoring stock levels
Challenges/Needs:
1.Competition from Supermarkets & Large Retailers
Big retail stores and wholesalers offer lower prices, making it hard for spaza shops to compete.
2.Security & Theft
High risk of burglaries, armed robberies, and shoplifting.
Need for security measures like cameras, alarms, and burglar bars.
3.Stock & Supply Issues
Limited access to wholesalers due to transport costs.
Inconsistent stock availability, especially for popular items.
4.Cash Flow & Credit Problems
Customers often request to buy on credit, affecting cash flow.
Difficulty in managing daily sales and expenses.
5.Lack of Business Skills
Many owners lack financial literacy and business management skills.
Poor record-keeping and stock management can lead to losses.
Intervention Insights and Results
Intervention Details:
Intervention / Solution
The Small Business Assessment Tool (SBAT) was conducted on the business, Seda intervened as follows:
• POS Machine- The business was assisted with a POS Machine.
• Training- The business was assisted with Basic Inventory Management training.
• Access to Finance- The business was assisted with stock worth R6500 from W&R Seta and Sedfa Spaza shop Support Programme
The Small Business Assessment Tool (SBAT) was conducted on the business, Seda intervened as follows:
• POS Machine- The business was assisted with a POS Machine.
• Training- The business was assisted with Basic Inventory Management training.
• Access to Finance- The business was assisted with stock worth R6500 from W&R Seta and Sedfa Spaza shop Support Programme
Outcome Details:
• The Spaza Shop sustained 1 job and created 2 new job.
• The Spaza Shop increased clientele, due to the use of POS machine since some clients
prefer not to carry cash.
• The Spaza Shop turnover increased from R150 000 to R180 000 per annum.
• Net profit increased from “R8 880 to R11 380”. As a result, the business was able to buy
a new freezer to complement the increased demand for goods.
• The Spaza Shop increased clientele, due to the use of POS machine since some clients
prefer not to carry cash.
• The Spaza Shop turnover increased from R150 000 to R180 000 per annum.
• Net profit increased from “R8 880 to R11 380”. As a result, the business was able to buy
a new freezer to complement the increased demand for goods.
Client Feedback
Client Comments:
I would like to thank Sedfa and W&R Seta for the assistance towards our business. We are forever grateful as VukaUzenzele Supermarket we look forward to a continued relationship with our stakeholders. Thank you.
