Soweto was one of the largest disadvantaged townships in South Africa, and a unique pattern of outshopping originated due to the lack of retail investment and development in the area. After 1994, Soweto as a township benefited more than any other South African township through retail development, resulting in a major shift in shopping patterns towards buying inside the township (inshopping). This change in shopping pattern provides the focus of the research problem, namely to understand the changes in buying behaviour and certain retail patronage practices of Sowetan residents. The main aim of the study was to investigate, firstly, the profile of inshoppers and outshoppers and, secondly, to examine the relationship between certain profile components (education, income, car ownership and duration of residency) and (i) inshopping, and (ii) outshopping propensity as examples of changes in retail patronage in the Soweto township. In this study, a descriptive research design was used. A disproportionate stratified sample of Soweto households was selected and interviewed, consisting of 690 households spread over 11 sub-areas of Soweto. There is a marked difference between the profiles of in- and outshoppers living in Soweto in terms of income and educational levels, car ownership and duration of residency in the area. The value and contribution of the study lies in the fact that some of these findings correlate with findings in other countries of the world; however, there are also a number of major differences in the profiles. South African investors and retailers should take cognisance of these differences and adapt their retail strategies accordingly in their efforts to market successfully in the Soweto market.

The aim of the paper is to determine empirically through quantitative research the key characteristics for survival of formal small businesses in the Soweto Township area. The focus was on the formal small businesses that have been operating in a very dynamic business environment with the introduction of modern shopping facilities during this period. Binary logistic regression was used to develop two regression models to predict the survival of formal small businesses based on the key characteristics identified in the literature study. The results indicate survival similarities between formal and informal small businesses regarding longevity of the business, better qualifications of owners/managers, greater maturity of owners/managers and being further away from the new shopping malls. Even with the drastic changes in the business environment of formal small businesses in Soweto, there were a group of small businesses that were able to survive and grow. Information regarding this group of small businesses can be of value to owners and investors in their future consideration of venturing and funding new small businesses in the township areas of South Africa.

Changes in retail patronage in the South African retailing environment since the advent of democracy in 1994 need to be further researched. Various factors have played a role in making the South African retail environment the dynamic place it is. Some of the major changes include the new retail planning that has occurred since democracy and the effect it has had on the disadvantaged black township areas. The aim of this study was to examine the influence of inshopping and outshopping as special instances of retail patronage in the Soweto township. Soweto was chosen for the study because it is one of the largest disadvantaged townships in South Africa. Both exploratory and descriptive research designs were used in the study. A disproportionate stratified sample was selected and interviewed, consisting of 690 households spread over 11 subareas of Soweto. It was found that there is a marked difference between the profiles of in-and out-shoppers living in Soweto. Some of the findings correlate with the findings in other countries of the world, but there are also a number of major differences. South African retailers should take cognisance of these differences and adapt their retailing strategies accordingly.

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