ESikhawini water purifiers face extinction as Shoprite enters market

Small business owners in eSikhawini, on KwaZulu-Natal’s North Coast, have accused retail giant Shoprite of threatening their survival by introducing purified water refills at its eSikhawini Mall branch.

In a formal petition to the store manager, local water purification operators warned that the move was pushing independent outlets into financial distress, with some already on the brink of closure.

They argued their livelihoods depend entirely on purified water sales, unlike Shoprite's, which draws revenue from a wide range of goods, including groceries, appliances, and prepared meals.

“The introduction of water refills at your store has had a severe and direct impact on our businesses, with many experiencing drastic drops in sales, and some even being forced to close permanently,” the petition read.

The entrepreneurs cautioned that Shoprite’s entry into their niche market was undermining community-based enterprises and risked creating a monopoly.

“We believe this practice is not supportive of the local economy or community development. Instead, it undermines small, independent businesses that have invested their resources, time and effort into providing an essential service to the residents of eSikhawini,” the petition continued.

They urged Shoprite to withdraw from the purified water trade and instead consider partnerships with local operators.

“We trust that Shoprite, as a leading retail brand, will take this matter seriously and recognise its social and economic responsibility to support local participation rather than diminish it,” they wrote.

One of the business owners, Siphelele Shabalala, took to social media to appeal to residents of eSikhawini to support them as local business people who can't compete with the likes of Shoprite, Checkers and OK Foods.

Shabalala said he's had to let go of two women who worked at his shop and is behind with rent at his shop.

"Shoprite has entered the township economy at uncompetitive prices. They are selling purified water at R1 per litre, a price we used three years ago. When we appeal to them to adjust their price, they say we must review ours, which is impossible in this economy," said Shabalala, who said their business since Shoprite introduced purified water for refills has tanked by 75%.

Shabalala, who has been in the water business for eight years, said he's been forced to close down two shops.

Shabalala has started an online petition, "Help Small Water Businesses from Unfair Competition", at Change.org with the aim of garnering support from eSikhawini residents. The petition had 90 verified signatures at the time of publishing.

"Small water businesses are integral to local economies, offering employment opportunities and supporting families. The current imbalance in pricing threatens these benefits since we cannot compete with retail giants' economies of scale," said Shabalala in his petition.

Shoprite had not responded to the petition at the time of publishing.

The controversy comes as Shoprite Checkers’ Sixty60 delivery platform continues to dominate the retail market. This week it emerged that Sixty60 sales nearly match the entire market value of Spar and Pick n Pay combined. The service now accounts for almost 10% of Shoprite’s South African supermarket sales, which rose 9.5% in the past year to R213.5 billion.

Sixty60 also represents almost 40% of Woolworths Food’s business and controls 80% of the online grocery delivery sector. For every R100 spent at Checkers, more than R19 comes via Sixty60.

What’s in the water?

eSikhawini, under uMhlathuze Municipality, has long struggled with an unreliable water supply. In 2023, a major water project at Tronox collapsed amid corruption claims and delays.

The project, initially scheduled for completion by December 2022, was handled by the uMhlathuze Water Board. But after repeated setbacks, the municipality terminated the contract and sought a new implementing agent.

The delays gave rise to a patchwork water economy; water tanker operators and small purification businesses became essential for residents.

With the system still fragile, eSikhawini residents have grown accustomed to queuing for water tanker trucks or buying refills from local purified water outlets.

In June this year, a strike by municipal workers affiliated to the South African Municipal Workers Union (Samwu) further disrupted supply, which officials described as deliberate sabotage.

Despite interventions, eSikhawini’s water problems persist, continuing the dependency on local purified water businesses, the same enterprises now pitted against one of Africa’s largest retailers.

SUNDAY TRIBUNE