South Africa's wholesale and cash-and-carry sector remains a critical link between major consumer-goods producers and the country's enormous network of independent retailers.
Fresh market developments on 2 September have again put the sector's economics in focus as operators compete for traders who themselves serve increasingly price-conscious consumers.
A supply chain behind thousands of small businesses
Cash-and-carry warehouses perform a role that is easy to underestimate.
Independent shop owners, informal traders and small supermarkets generally lack the purchasing scale and distribution infrastructure of national retail chains. Wholesalers bridge that gap by aggregating products from manufacturers and making them available in commercially useful quantities.
The result is an ecosystem connecting large suppliers to thousands of smaller businesses.
For entrepreneurs, product availability and wholesale pricing can determine whether they can compete effectively with supermarkets and other formal retailers.
Price pressure travels down the chain
South African consumers remain highly sensitive to food and household-goods prices.
That pressure moves backwards through the retail chain. Independent retailers need competitive wholesale prices, while wholesalers need efficient procurement, warehousing and distribution.
Even small changes in transport, electricity or inventory costs can affect margins in businesses where volumes are high but percentage margins can be narrow.
Scale therefore matters.