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Understanding more about SA’s supermarkets
To find out more about how South African supermarkets affect the sustainability of our environment, communities and local economies, the NCF has launched a pilot research study in Pietermaritzburg.
Working with the Msunduzi Innovation and Development Centre, the NCF hopes that the study will find out more about the social, economic and environmental impact of how supermarkets operate.
“Supermarket chains in South Africa make up for a relatively high proportion of consumer food and grocery expenditure,” said Paul Crankshaw, who is the NCF’s manager for this project. “It is estimated that consumers here spend about 60% of their food money in supermarkets – and there are about 1,700 supermarkets countrywide. Clearly, this is a powerful industry with huge potential for benefit.”
The study will look at different kinds of impact that supermarkets have, including:
- Environmental impact – this impacts the natural environment. Do supermarkets have a procurement policy that ensures the optimal use of local suppliers – especially of perishable food products – so that transportation and fossil fuel emissions is kept to a minimum? Do they deal with packaging in an environmentally sensitive way, and how do they manage wastage?
- Local economic impact – this affects local businesses. The impact of supermarkets on the local economy is unclear. Does the store bring jobs and diversity to local economies, or does it simply undermine locally owned and operated businesses?
- Pricing – this affects consumers generally. There is uncertainty about whether the growth and spread of these supermarkets has the effect of lowering prices (through buying power and economies of scale) or keeping them artificially high (because there are only four main players in the economy and competition may be compromised).
- Organic products. Do supermarkets provide consumers with enough choice regarding organic products? Do supermarkets help to inform the consumer about the exact meaning and implications of the ‘organic’ label on food, and do they encourage organic production?
- Accessibility by consumers to supermarkets. Is access to supermarkets limited to those people who have their own transport? Where exactly are supermarkets located and does their location limit access to people without their own cars?
The study will look mainly at the four supermarket chains – Spar, Pick n Pay, Shoprite-Checkers and Woolworths.
The research is made possible by funding from the Swedish Society for Nature Conservation, in a link facilitated by Consumers International (the global body of consumer groups of which the NCF is a member).
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