The township’s economy is estimated at R307-billion nationally and with the rise of township residents climbing the corporate ladder, more brands are trying to penetrate the township market to cash in. Townships such as Soweto, Gugulethu and Umlazi have grown significantly and are becoming more diverse in terms of culture and income levels.
According to StatsSA (2012), in 2011 Soweto consisted of 355 331 households and the economically active residents (15–64 years) constituted 71% of inhabitants. Based on spending power of R5 billion annually, this area emerged as a lucrative business opportunity for large retailers and a resultant increase in formal SMMEs.
As the most populous area in South Africa, with 1 271 628 inhabitants, Soweto is a key retail growth point (Prinsloo 2014:6, population growth is a key driver of retail growth). Johannesburg, as the biggest metropole, is boosted by the 3.7% that Soweto contributes to the gross domestic product (GDP) of the province.