Spar agrees to phase out its exclusive lease agreements & to start opening opportunities to SMMEs.
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GUEST - James Hodge – Competition Commission Chief Economist
Spar has finally joined its fellow grocery retailers Shoprite and Pick n Pay in agreeing to phase out its controversial exclusive lease agreements. The Competition Commission said on Wednesday that the Spar Group reached a consent agreement to end the long-term agreements, following a process mediated by retired judge and former judge president of the Competition Appeal Court Dennis Davis.
Historically, exclusive long-term lease agreements signed with property developers and other landlords have allowed large retailers to operate exclusively in shopping centres, preventing competitors and smaller independents - including historically disadvantaged individuals - from competing at the same properties. "The exclusive lease agreements of Shoprite, Pick n Pay and Spar covered close to 2 000 shopping malls and convenience centres nationally, and excluded any specialist or general grocery supermarkets from competing for consumers in those malls," the commission said. "As more than 50% of grocery shopping journeys are to malls and convenience centres, collectively these leases prevented competition for most consumer purchases."
Spar has finally joined its fellow grocery retailers Shoprite and Pick n Pay in agreeing to phase out its controversial exclusive lease agreements. The Competition Commission said on Wednesday that the Spar Group reached a consent agreement to end the long-term agreements, following a process mediated by retired judge and former judge president of the Competition Appeal Court Dennis Davis.
Historically, exclusive long-term lease agreements signed with property developers and other landlords have allowed large retailers to operate exclusively in shopping centres, preventing competitors and smaller independents - including historically disadvantaged individuals - from competing at the same properties. "The exclusive lease agreements of Shoprite, Pick n Pay and Spar covered close to 2 000 shopping malls and convenience centres nationally, and excluded any specialist or general grocery supermarkets from competing for consumers in those malls," the commission said. "As more than 50% of grocery shopping journeys are to malls and convenience centres, collectively these leases prevented competition for most consumer purchases."
