The Grocery Retail Sector Market Inquiry has recommended that the big supermarket chain stores should stop enforcing long-term exclusive lease agreements at malls.
The Competition Commission has released its provisional report on the matter.
It says government’s intervention is needed to protect small businesses in townships.
“The main findings from this report is that the retail market in SA is highly concentrated, dominated by four large supermarket chains who control more than 70% of the market and a whole lot of other consequences emanate from this. For example, they are able to insist on exclusive lease agreements as anchor tenants, demand rebates from suppliers, demand lower rentals in a way that discriminates against others,” says Competition Commission’s Thembinkosi Bonakele
