The relationship between key demographic profile descriptors and the propensity for inshopping and outshopping by Sowetan residents

Abstract

Soweto was one of the largest disadvantaged townships in South Africa, and a unique pattern of outshopping originated due to the lack of retail investment and development in the area. After 1994, Soweto as a township benefited more than any other South African township through retail development, resulting in a major shift in shopping patterns towards buying inside the township (inshopping). This change in shopping pattern provides the focus of the research problem, namely to understand the changes in buying behaviour and certain retail patronage practices of Sowetan residents. The main aim of the study was to investigate, firstly, the profile of inshoppers and outshoppers and, secondly, to examine the relationship between certain profile components (education, income, car ownership and duration of residency) and (i) inshopping, and (ii)  outshopping propensity as examples of changes in retail patronage in the Soweto township. In this study, a descriptive research design was used. A disproportionate stratified sample of Soweto households was selected and interviewed, consisting of 690 households spread over 11 sub-areas of Soweto. There is a marked difference between the profiles of in- and outshoppers living in Soweto in terms of income and educational levels, car ownership and duration of residency in the area. The value and contribution of the study lies in the fact that some of these findings correlate with findings in other countries of the world; however, there are also a number of major differences in the profiles. South African investors and retailers should take cognisance of these differences and adapt their retail  strategies accordingly in their efforts to market successfully in the Soweto market.