Mall retail exclusivity provisions under scrutiny

Posted On Monday, 22 February 2016 16:28 Published by
Rate this item
(1 Vote)

Competition Commission announces the appointment of a panel for the grocery retail sector market inquiry which is due to tackle the exclusivity of lease agreements at shopping malls.

Competition_Commission

The Competition Commission yesterday announced the appointment of a panel for the grocery retail sector market inquiry which is due to tackle the exclusivity of lease agreements at shopping malls — a battle being fought largely among big retail chains.

Halton Cheadle, Lulama Mtanga and Lumkile Mondi have been appointed as chairman and panelists of the enquiry, respectively. The hearings are likely to be completed by May 29 next year.

First announced in May last year by Economic Development Minister Ebrahim Patel, the enquiry will also look into whether there are features in the grocery retail sector that lessen, prevent or distort competition market dynamics.

The probe comes as the long-delayed private healthcare market inquiry got under way in Pretoria this week. By far the most contentious issue to be scrutinised is that of lease exclusivity at malls. Court cases on exclusivity clauses involving Shoprite, Pick n Pay, Massmart and Fruit & Veg City’s Food Lover’s Market have so far delivered mixed results.

In some instances exclusivity clauses have been relaxed but Massmart, which is pushing into the grocery space, has hit a brick wall, spurring it to file a complaint with the competition authorities in September 2014.

Mall developers often sign exclusivity agreements with anchor tenants in the hope that they will attract other high-quality businesses and shoppers. The agreements block the sale of certain types of food by other retailers.

source: BD

Last modified on Monday, 22 February 2016 22:14

Most Popular

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Timeous reduction in the repo rate – property stands the test of time

Mar 19, 2020
Andrew Golding Golding Property Group
Against the backdrop of the unprecedented times we find ourselves in, today’s (19 March…

Please publish modules in offcanvas position.