South Africa: Clicks Takes Fight to Spaza Shops With Kwamakhi

What the report says

Clicks has launched a new smaller-format store called KwaMakhi, opening the first outlet in Tembisa, Gauteng, as it looks to reach township shoppers who often buy from spaza shops and discount retailers. According to Scrolla, the retailer plans to have 10 of these outlets operating by the end of the year.

The company is investing R30-million in the first 10 stores. The format will be different from standard Clicks branches: it will focus on everyday essentials in smaller pack sizes, including baby care, personal care, beauty, household and selected healthcare products. The approach is aimed at customers with tighter budgets who may prefer to buy smaller amounts more frequently.

Clicks chief executive Bertina Engelbrecht said the company has identified about 2,000 locations that may not be viable for its traditional store model. The first planned locations also include Khayelitsha and Cravenby in the Western Cape, showing that the pilot is being tested across different township and peri-urban markets. If successful, the company sees KwaMakhi as a possible growth channel and potentially a format that could be expanded beyond South Africa.

The move highlights growing competition for township consumer spending, where convenience and price are key factors. For Clicks, the pilot will serve as a test of whether a smaller, more focused store can attract enough demand in areas where a full-size outlet would not be practical.