The online grocery surge in South Africa is helping major retailers move stock faster and keep customers spending, but new research warns that the same shift could deepen pressure on smaller stores and rural communities struggling to keep up the pace with digital retail systems.

A study conducted by Ayanda Lesenyego, a PhD candidate at the North-West University (NWU), found that e-grocery platforms improved operational efficiency, inventory control and customer retention in large retail chains. The research also found that poor infrastructure, delivery costs and low digital access continue to limit participation in the growing online grocery market.

The research comes as retailers across South Africa expand online delivery services in response to changes in consumer shopping habits following the Covid-19 pandemic. Large chains such as Shoprite Holdings have increased investment in digital grocery platforms, including Checkers Sixty60, as competition in the online retail sector intensifies.

“E-grocery platforms have transformed urban consumer markets and strengthened the competitiveness of major retailers,” Ayanda said in the study. “Their long-term effectiveness depends on building consumer trust, addressing infrastructural inequalities and fostering SME participation.”

The study found that retailers are increasingly relying on digital systems to manage stock forecasting, customer orders and delivery coordination. While these systems improve service speed and operational productivity, the research identified technical failures, employee resistance to digital change and supply-chain pressures as barriers to long-term sustainability.

Ayanda’s research argues that online grocery systems have changed how retail stores operate behind the scenes, with workers expected to manage both in-store duties and online order fulfilment at the same time.

“Productivity refers to the systems, people and processes alignment, rather than a purely technological function,” Ayanda said.

The study also highlighted a growing divide between urban and rural consumers. While smartphone use and internet access have supported online grocery growth in cities, many rural communities remain excluded because of poor delivery infrastructure and limited access to digital payment systems.

The research recommends that retailers invest in logistics infrastructure, digital training and supply-chain systems to support wider access to online grocery services. It also calls for measures that could help smaller retailers adapt to digital commerce as competition in the retail sector in South Africa shifts online.

Ayanda Lesenyego