Become a member
Join FABCOS today
Become part of a growing number of corporate's that together with FABCOS are working to find a profitable balance between:
- The legacy of our past and the demands of a prosperous future
- The incompatible characteristics of the informal and formal
economies of SA - Established traditions and new ways of doing things
- Township, rural and suburban dynamics
Pillar 1: bulk buying
The Wholesale & Retail sector is the fourth largest contributor to the national GDP with a share of approximately 12, 4%. The sector output of R 432 billion in 1999 is generated by more than 65,000 enterprises. These enterprises range from about 50 very large category organizations to tens of thousands of small, medium and micro enterprises (SMEEs) such as cafes, spazas and speciality goods retailers that represents 99% of the employers in the sector. The W&R sector is characterized by intense rivalry and low margins.
Real growth in the sector over the last decade has been disappointing at 1-2% per annum (as measured by official statistics). This figure is, however, possibly misleading and does not take into account the emergence of the informal retailing sector, which probably today accounts for a significant, albeit unknown percentage of output. The fragmented structure of this informal sector calls for innovative and shared initiatives to improve the business environment and the skills profile of the sector participants and must be aligned with the National Skills Development Strategy.
Individual small businesses are a lone voice in the dark when it comes to price and trading terms negotiations. Together though, they command considerable strength. FDN has been created as a collective price bargaining voice for retailers.
