Food and other consumables are always in high demand all over the world, and this is not different in South Africa. Due to the growing population in the country, the need for convenient stores, supermarkets, and spaza shops close to people’s homes is on the rise. As such, setting up a spaza shop is worth considering. Spaza shops offer the convenience of finding basic food commodities, snacks, and other essentials under one roof. Opening a spaza shop is a very profitable business in South Africa. The need for convenience among consumers cannot be understated. With a large number of people working long hours very few have time to visit the grocery stores and the overall experience of doing groceries in sometimes crowded supermarkets is not a pleasant experience for many.  Also, retail sales have been increasing over the years due to an increase in the country’s population and urbanisation. The number of people moving from rural areas to urban areas has been on an upward trend. The retail industry contributes significantly to the country’s economy. It is evident that a spaza shop is a business that you can explore. Convenience is a major revenue driver for many stores thus, a spaza shop located within the neighbourhood will be profitable. This article will outline how to start a spaza shop business in South Africa, and the spaza shop business plan – PDF, Word and Excel.

Business Model

A Spaza shop offers convenience; it is simply the link between dispersed supplier companies or supermarkets and individual customers. A well-stocked local spaza shop provides basic necessities in order to provide the community with the goods when supermarkets are closed or located far from the community. Just like a supermarket, spaza shops’ operations involve physically handling stock as it moves from supplier to customer. It’s also important to note that these stores provide a service as well and do not necessarily produce the goods that are sold to customers. When developing your spaza shop business plan, it is important to determine who your suppliers are as well as your target market.

Market Research

When setting up any kind of business, you must make sure that you research your market. Researching your potential customers before you set up shop will allow you to understand what your potential customers like, especially if you are to set up a brick-and-mortar spaza shop. When studying your market, consider the demographics of your potential customers, their needs, preferences, as well as their buying habits. You need to understand your customers’ spending patterns, specific needs, and preferences. You can only gather such information through studying the area where you intend to put your store and by asking other stores within the vicinity. By researching your potential customers’ and their motivations, you can put yourself in a much better position to create campaigns that are relevant to them. Market research will also help you figure out who your competitors are, what their strengths and weaknesses are, and what they offer. This can help your spaza shop improve your customers’ experience. By researching your market and doing competitor and customer analysis, you can be in a much better position to create a unique competitive advantage. Even if there are plenty of supermarkets, spaza shops, and other retail stores in the country, you can differentiate yourself by offering a better grocery shopping experience. There are other things that you can do to set yourself apart, such as offering certain product lines that your local competitors do not provide or offering discounts on certain items.

Location & Premises

Determining the location of your shop is important before you start. It’s important that you locate your spaza shop close to your target market. Consider the amount of road traffic and find an easily accessible location where people can stop and quickly buy what they want. There are several possible locations, including shopping centres, locations, townships, surburbs, and the CBD. Opening a spaza shop close to places that typically have potential for traffic such as near schools, factories, other businesses or within the neighbourhood is ideal. However, it is important to be strategic about your neighbouring businesses because you are more than likely going to feed into each other instead of competing. If you open a spaza shop or other type of convenience store in an overly saturated area, the likelihood that your business will succeed will be very low. You will to build or rent a shop to operate from. Spaza shops / Tuck Shops do not require a lot of space, thus even a small shop can do. You can also take use of metal containers (like shipping containers) which can be converted to spaza shops. Your spaza shop business plan should include costs of bulding or renting the shop.

Equipment For A Spaza Shop Business

You will need furniture, shelves, refrigerators and may require a small truck for your spaza shop. The equipment you need will depend on the size of your spaza shop and the kind of products you will sell. Ensure that your business premises are safe for your employees and customers. Your spaza / tuck shop business plan should include the costs of purchasing the equipment.

Spaza Shop Products

There are different types of products you can sell in your spaza shop. You can provide groceries, snacks and readymade food, alcohol as well a as non-food items. It will be advantageous to have all various types of accessories and products such as detergents, hair products, cosmetics and over the counter medication to provide convenience to your customers.  In addition to selling beverages you can also sell hot and cold beverages, baked goods, and other snacks in your tuck shop. Another essential factor in running a spaza shop is selecting the right suppliers. You should partner with suppliers who can provide affordable and quality ingredients consistently. Your spaza shop business plan should outline the various products and services you will provide.

Competitive Analysis

There is a growing number of supermarkets, grocery stores, and spaza shops in South Africa. These stores consist of a number of local and international supermarkets. The retail sector consists of major supermarkets that take up more than half of all retail sales. When it comes to spaza shops, each neighborhood, especially in high density areas, has quite a number of them. There are also a lot of small to medium-sized supermarkets that account for a significant portion of the retail market. The competition is stiff, therefore, it is important to determine your competitive advantage and differentiate yourself in order for your spaza business to compete with the rest of the players. One of the ways you can compete with large supermarkets and other stores is by locating yourself close to your customers. People are more likely to visit your spaza shop if it is within walking distance. You can also price your products competitively by offering discounts and ensuring that you offer a great customer experience. As a shop owner, you must conduct a competitive analysis for your business in order to understand where it fits in the market. This way, you can figure out where your strengths and opportunities lie and capitalize on the shortcomings of other supermarkets or retail stores.

Staff & Management

As a customer-centric spaza shop, it’s important that your shop attendants are friendly and efficient. Your employees should be passionate about serving your clients. If you want to hit the ground running it’s better to hire people who have experience in this business. Inexperienced staff members need to get extensive training before they can be given intricate tasks. Running a spaza shop can be risky, and the safety of your shop attendants and employees is important so you should ensure that your staff members know how to prevent and respond to robberies. As a spaza shop owner, you will need to find ways to prevent your staff members from stealing from you as well. Depending on the size of your shop, the actual number of your employees will vary however, you will need someone to attend to customers cashiers, security as well as management. In some cases, one person can be a cashier, attend to customers and also perform security duties if your spaza shop is small. Your spaza shop business plan should clearly define the roles each staff member will be responsible for as well as the the salaries.

Marketing And Sales Strategies

Marketing a spaza shop is no different from marketing any other retail store. There are sales and marketing methods you can apply to your spaza shop. First, your spaza shop needs a brand that represents your business’s personality. Since the retail market is so competitive, you need to find something that separates you from the rest of your competitors. When thinking about your brand, do not hesitate to think consider popular retail stores, supermarkets, and other spaza shops and what they are known for. What kinds of products are you going to offer? Are you going to offer hot meals and alcohol? Can people sit in your establishment, or will you allow people to “hang out” on your premises? You must determine what will separate you from every other spaza shop in town. It’s important to figure out who your target audience is and create sales and marketing strategies that will attract them. Social media marketing is another effective way to raise awareness. Encourage your clients to leave positive reviews and spread the word on your social media platforms, as well as on any other listings. Make sure that you regularly update your online pages with photos, menus, and any discounts or offers you may have at your Spaza shop.


The demand for groceries and other spaza shop products is huge. Convenience continues to be an important factor when it comes to driving spaza shops sales. There is a lot of competition in the retail industry, so you should have a good marketing strategy. Large retail chains have begun opening other branches close to people’s homes, which has increased the level of competition within the retail industry. Nevertheless, many customers prefer the intimate service they get from spaza shops. Unlike a supermarket, spaza shops are more than just a mini grocery store. They can be a “chill spot” for some, where friends can meet up to relax and enjoy each other’s company. Your spaza/ tuck shop business plan should include a proper marketing strategy for the business.

Keys to Profitability

One thing that can make or break a spaza shop is its location. If you want to open a successful spaza shop, choose a location with high foot traffic near a mall and close to your customers’ homes. This is a simple way to make money. Consider starting without investing a lot of capital too soon, and as the shop grows, invest in more stock, staff, and other services. Find ways to cut your overheads and do not spend all your profit. Running any kind of business may seem hard at first, but once you get the hang of it, your business will grow.

Is A Spaza Shop A Good Investment?

Investing in a spaza shop is a profitable venture, but obviously, this will depend on many factors such as your strategy and target market. The startup costs of opening a spaza shop are relatively lower compared to opening and running a supermarket. Also, a spaza shop is a good entry point before you can build a large supermarket or grocery store. It is possible to make reasonable profits from a spaza shop since the running costs are low. Apart from the obvious advantages of becoming financially independent and becoming your own boss, running a spaza shop can be a rewarding way of uplifting your community.

Given that the South African market is one of the leading emerging economies on the African continent, there is potential for high growth. The retail sector has been growing rapidly over the years, thus opening a spaza shop can be a good investment. Whether you are a young entrepreneur, a professional seeking to start your own business or someone who needs a retirement plan, investing in a spaza shop is something worth considering. One thing that can set you apart before investing in any venture is developing a business plan. A well thought out spaza shop business plan will help you in both the short term and in the long run. There are various risks associated with running a spaza shop like any other business venture, so your business plan should clearly outline these risks and clearly state the measures you will take to minimise them.


For an in-depth analysis of the spaza shop business in South Africa, purchase our spaza shop business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the spaza shop business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a spaza shop business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the spaza shop business plan will lay out all the costs involved in setting up and running the business. The business plan is designed specifically for the South African market.


The spaza shop business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your spaza shop business
  • As a spaza shop project proposal
  • Assessing profitability of the spaza shop business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation


The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the spaza shop business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your spaza shop business in South Africa

The Spaza Shop Business Plan package consist of 4 files

  1. Spaza Shop Business Plan – PDF file (Comprehensive – 82 pages)
  2. Spaza Shop Business Plan – Editable Word File (Comprehensive – 82 pages)
  3. Spaza Shop Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 50 pages)
  4. Spaza Shop Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 


We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

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Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/MasterCard then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on and we will assist you.

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Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Instant EFT then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on and we will assist you.

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