Youth Skills: A Catalyst for Economic Growth and Innovation in the Retail Industry

In South Africa, where youth unemployment has reached a staggering 45.5%, developing youth skills must remain a top priority for the country’s progress. This highlights the critical role that skills development plays in shaping the future of young people, especially in sectors that drive economic growth.

Impact of the 4th industrial revolution

The Fourth Industrial Revolution (4IR) is reshaping industries worldwide, and retail is no exception. Technological advancements, coupled with shifting consumer demands, are driving change. Disruptive innovations such as e-commerce, robotics, artificial intelligence, and virtual reality are transforming the retail landscape, creating both new job opportunities and demands for new skills.

While technical skills are essential for young individuals to navigate this evolving environment, it is important not to neglect the value of soft skills. Cognitive thinking, empathy, creativity, adaptability, and strong social behaviors are critical for success in retail and related industries. Addressing the youth unemployment challenge requires a balanced combination of technical expertise and human-centric skills.

Talent Loss - the brain drain

Another significant challenge is the potential loss of talent to opportunities abroad. The Decoding Global Talent survey shows that 84% of South African youth are willing to relocate for work, with 44% actively searching. This trend poses a risk to South Africa’s long-term economic growth and development.

What is Spar doing about it?

Recognizing the importance of creating sustainable employment, The SPAR Group is dedicated to empowering young South Africans through education, leadership development, and hands-on experience.

The SPAR Academy of Learning provides foundational life skills and practical retail experience. Numerous candidates have already been trained in SPAR stores across South Africa, with plans to expand these efforts over the next five years.

Launched in 2018, the JumpStart programme equips youth with essential skills, building a foundation for long-term employment. By focusing on entry-level skills and connecting participants to job opportunities in retail and the supply chain, we have launched careers for many school-leavers, graduates, and previously unemployed youth. Through a partnership with the MRP Foundation, 1,357 young people have been trained and successfully placed in permanent positions within SPAR stores. This not only reduces unemployment but also helps our retailers access a vetted and skilled talent pool.

We collaborate with our retail stores to support learning across both retail and distribution centres. A comprehensive 12-month training programme, developed in partnership with the YES4Youth initiative, has enrolled over 400 participants each year since 2022. These interns earn a minimum wage while undergoing personal development training, coaching, and other benefits, including the possibility of permanent employment within our business. To date, 161 learners from the first two cohorts have secured permanent employment, with many more expected to follow.

Our skills development initiatives also extend to internships and learnerships at our distribution centres and central office, providing opportunities to over 200 participants annually.

FutureMe Partnership

Through our FutureMe partnership, we inspire high school learners to consider careers in retail by covering topics such as personal values, branding, business ethics, and entrepreneurship. Graduates are encouraged to join the JumpStart programme for practical experience.

Supplier Development Programme

The Spar Supplier Development Programme integrates over 900 micro and small food suppliers, including start-ups, into our supply chain. The Rural Hub model, initiated in 2016, supports small-scale farmers with market access, technical training, and funding. The success of the Ofcolaco hub in Limpopo highlights this approach, with much of its produce now being supplied to SPAR distribution centres—enhancing food security and boosting the local economy.

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Conclusion

Our holistic approach addresses both immediate employment needs and long-term economic sustainability. By equipping young South Africans with essential skills and opportunities, The SPAR Group aims to retain talent and support economic growth, fostering a more resilient and inclusive society.

These initiatives demonstrate the transformative potential of corporate responsibility in driving positive change. Together, we can achieve even more.

For more information on The SPAR Group’s training, internship, and supplier development programmes, please visit SPAR.