THE SOUTH AFRICAN GROCERY SMEs ABILITY TO ENDURE COMPETITION FROM LEADING RETAILERS AND REMAIN SUSTAINABLE

The small and medium-sized enterprises (SMEs) are crucial players in the economy of nations, through their contributions to growth domestic product (GDP) and for social upliftment in job and wealth creation. The SMEs thrive under tough competition from larger retailers which has more vigorous marketing strategy and elaborate networks of stores spread nationally. Under the backdrop, this study explored the South African grocery SMEs ability to endure competition and remain sustainable. The resource-based view (RBV) theory underpinned the study, and the sample of the study was drawn from two towns from North West province of South Africa. Qualitative research methodology and constructivism research paradigm were pursued, and the data analysis indicated that transport optimization by third-party logistics (3PL) firms reduced transportation costs, and enhanced supplier-customer relationship, increased turnover. Consequently, the turnover improved profitability and, business endurance, rendering competitiveness and sustainability of the enterprises. A recommendation was made for the South African grocery SMEs to speed up technology applications, to enhance competitive advantage.