JOHANNESBURG - The Competition Commission today said that it wants Pick n Pay, Woolworths, Spar and Shoprite to stop enforcing exclusivity clauses in shopping malls they do business to allow for more competition.
The regulator in its provisional report on the grocery retail market inquiry said the formal grocery sector has high levels of concentration.
“Shoprite, Pick n Pay, Spar and Woolworths together have a 72 percent market share,” the Commission said.
“Long-term exclusive lease agreements reinforce market concentration, excluding challenger retailers and specialist stores.”
The multi-million rand sector came into focus earlier this year Massmart lodged a complaint with the commission alleging that retail giants blocked rivals from accessing malls.
The Commission recommended that the industry fix distortions in competition in relation to long-term exclusive lease agreements and buyer power and support the competitiveness of small and independent retailers.