• About
  • Our Team
  • Contact Us
Saturday, April 1, 2023
Falcons
  • Home
  • The Cases
  • Insight
  • In the Press
No Result
View All Result
  • Home
  • The Cases
  • Insight
  • In the Press
No Result
View All Result
No Result
View All Result

Home » Victory for SMEs as Shoprite to immediately stop enforcing exclusivity clause

Victory for SMEs as Shoprite to immediately stop enforcing exclusivity clause

by Sizwe Dlamini
May 14, 2021
in Uncategorized
Victory for SMEs as Shoprite to immediately stop enforcing exclusivity clause

Shoprite Checkers will no longer enforce the exclusivity clauses contained in various lease agreements against SMEs and specialist line stores with immediate effect.

READ ALSO

Ramaphosa may have to consider the prospects of donning orange overalls

If it makes cash but you have no clout, Rupert and co will muscle you out


CAPE TOWN – The commission on Monday welcomed the decision by the Competition Tribunal to confirm as an order the consent agreement, which states that exclusivity against other supermarkets will cease immediately in non-urban areas and will be phased out over five years in urban areas.

Shoprite Checkers will no longer enforce the exclusivity clauses contained in various lease agreements against small and medium-sized enterprises (SMEs) and specialist line stores with immediate effect, according to a consent agreement with the Competition Commission.

“In line with the recommendations of the Grocery Retail Market Inquiry (GRMI), Shoprite Checkers has, on behalf of its brands Shoprite, Checkers, and Usave, undertaken to waive exclusivity against small and independent grocery retailers and speciality stores in all shopping centres with immediate effect, the commission said in a statement.

Shoprite will also waive exclusivity against other supermarket chains in all non-urban shopping centres with immediate effect and phase out exclusivity over five years in urban areas. The phase-out will involve waiving exclusivity as leases come up for renewal and the retailer will not sign any new lease agreements that contain exclusivity clauses.

Competition Commissioner, Tembinkosi Bonakele said importantly, this undertaking also applied to Shoprite Checkers’ franchise business, OK Foods. Specifically, where Shoprite Checkers held the lease on behalf of a franchisee, the undertaking would be implemented immediately.

Where franchisees hold the lease, Shoprite Checkers and the commission agreed that within a period of 12 months, Shoprite Checkers will work with its franchisees to ensure compliance with the undertaking. Shoprite Checkers will also ensure that its franchise agreements will, in future, not allow franchisees to hold exclusive leases.

“The decision by the Tribunal is an important and positive step towards the rebuilding of the South African economy, following the devastating impact of the coronavirus pandemic, particularly on SMEs.

“The opening of space in shopping centres as a result of this historic agreement also provides an opportunity for new businesses to emerge in the South African retailing environment and this is crucial in providing consumers with product choice and alternative places to shop for grocery products,” said Bonakele.

The confirmation of this consent agreement marks a significant milestone in the enforcement efforts of the commission following 12 years since the initiation of the first broad investigation against exclusive lease agreements by the national supermarket chains.

More importantly, this agreement ushers in a new era in the South African grocery retailing environment as it opens up access for SMEs and other retailers in more than 1000 locations across the country in which Shoprite Checkers has exclusivity.

In its final report on GRMI, the Commission found that long-term exclusive lease agreements are widely prevalent in the grocery retail sectors and give rise to customer harm as they limit consumer choice within shopping centres.

BUSINESS REPORT


ShareTweet

Related Posts

Ramaphosa may have to consider the prospects of donning orange overalls
Uncategorized

Ramaphosa may have to consider the prospects of donning orange overalls

June 20, 2022
If it makes cash but you have no clout, Rupert and co will muscle you out
Uncategorized

If it makes cash but you have no clout, Rupert and co will muscle you out

October 13, 2021
AYO battles FNB in court over discrimination
Uncategorized

AYO battles FNB in court over discrimination

May 19, 2021
Does the DA hope to control Independent Media?
Uncategorized

Does the DA hope to control Independent Media?

May 18, 2021
Independent Media presents its case to SCoF, restates threat to media freedom
Uncategorized

Independent Media presents its case to SCoF, restates threat to media freedom

May 18, 2021
Oceana faces probe over BEE fraud claims
Uncategorized

Oceana faces probe over BEE fraud claims

May 18, 2021
Next Post
UIM leadership to snub second Senekal meeting

UIM leadership to snub second Senekal meeting

EDITOR'S PICK

Is KZN the factory of hitmen?

Is KZN the factory of hitmen?

March 8, 2023
ANC KwaZulu-Natal displays political intolerance

ANC KwaZulu-Natal displays political intolerance

February 15, 2023
Nepad concerned about South Africa’s energy crisis

Nepad concerned about South Africa’s energy crisis

February 9, 2023
ANC’s 30-year rule marked by empty promises and rhetoric

ANC’s 30-year rule marked by empty promises and rhetoric

January 23, 2023

POPULAR NEWS

Presidency reveals progress made to curb energy crisis engulfing SA

Presidency reveals progress made to curb energy crisis engulfing SA

January 23, 2023
Cyril Ramaphosa broke the law – Phala Phala Farmgate report

Cyril Ramaphosa broke the law – Phala Phala Farmgate report

December 1, 2022
Bawa accused of obstructing the course of justice

Bawa accused of obstructing the course of justice

October 27, 2022
Banks’ failure to adhere to FATF guidelines poses a major risk for SA economy

Banks’ failure to adhere to FATF guidelines poses a major risk for SA economy

August 25, 2022
RIGHT OF REPLY: The IRR will not forsake its classical liberal values

RIGHT OF REPLY: The IRR will not forsake its classical liberal values

August 18, 2022

About

The Falcons mission is to provide quality in-depth reporting on matters that would otherwise not be covered by mainstream media, to equip the public with factual information that are hidden from the public eye so they can be able to demand accountability from the country’s leadership. – We speak truth to power.

Categories

  • banking
  • conflict, war and peace
  • corruption
  • crime, law and justice
  • economic sector
  • economy
  • economy, business and finance
  • financial and business service
  • government
  • In the Press
  • Insight
  • investments
  • law
  • macro economics
  • News
  • Opinion
  • Politics
  • The Cases
  • Uncategorized

Recent Posts

  • Is KZN the factory of hitmen?
  • ANC KwaZulu-Natal displays political intolerance
  • Nepad concerned about South Africa’s energy crisis
  • ANC’s 30-year rule marked by empty promises and rhetoric

Copyright © 2023 - All rights reserved

No Result
View All Result
  • Home
  • The Cases
  • Insight
  • In the Press
  • About
  • Our Team
  • Contact Us

Copyright © 2023 - All rights reserved