New mall leaves Alex hawkers high and dry
Still, it didn't take long for Olivia Makalela to break into the market when she set up her stand five years ago.
She sang, danced and shouted slogans to attract attention to her stand in a courtyard next to the bustling 2nd Avenue, on the edge of the historic township.
But business has fallen in the past two weeks. Makalela blames the new Pick n Pay across the street, the anchor store of the recently opened Pan Africa Mall.
The Alexandra Pick n Pay franchise is a high-profile part of the corporation's move towards greater presence in previously under served areas, such as townships. “The goal it to get a Pick n Pay to as many people as possible,” said Izak Joubert, Pick n Pay's director of property and development.
He said plans to develop a Pick n Pay location in Alex began two years ago in a process typical of expansion into many township locations.
Spar's franchise director Gerhard Kriel described a more top down approach for his company, one of Pick n Pay's top competitors. “Wherever we believe that there's a gap for a supermarket, we try to put a supermarket there,” he said.
Kriel said Spar has opened 15 stores in townships over the past seven months. Pick n Pay has a similarly aggressive plan.
Score supermarkets, which operate in and near a number of township locations, are being converted to Pick n Pay stores. In addition, Joubert estimated that 30 - 40% of new store developments under consideration are in township areas.
Pick n Pay franchise director Neal Quirk insists that his company's expansion plans are not hanging hawkers like Makalela out to dry. “We're definitely not there to put the little guy out of business,” he said. “We're happy to get involved in terms of supplying them.”
This is exactly what is happening in Alexandra, according to franchise store owner Tshepo Ndlovu.
“There's a whole lot of hawkers here in Alex who have vegetables and fruits being supplied to them, and they resell to the market. We have fostered a relationship with them and they come through and buy from us,” he said.
The Alex Pick n Pay has an aisle dedicated to bulk quantities of goods designed for sale at reduced wholesale prices to hawkers and owners of nearby tuck shops. “I do [make a profit], but obviously at a minimum because I want [hawkers] to derive a real profit,” Ndlovu said.
Kate Philip is the head of the Second Economy Strategy Project, which released a report in January outlining the restricted possibilities for hawkers and other informal traders in South Africa's developing economy.
“The structure of our economy actually locks out informal sector activity,” she said.
Ndlovu says his store employs many locals, and residents do not have to travel far for shopping, as they now have their own mall. But for hawkers like Makalela, this is small consolation.
Last Tuesday, her stand had nothing but a few packets of cigarettes and matches. She was planning to close down for good. “I'm looking for a job,” she said. “Any job.”
Source: The Times
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