Pick n Pay to engage competition regulator over report on market dominance
Supermarket chain store Pick n Pay said on Tuesday that it would continue to engage South African competition regulators to address its concerns about the retailer's market dominance in shopping malls.
This is after the Competition Commission in May said that it wants Pick n Pay, Woolworths, Spar and Shoprite to stop enforcing exclusivity clauses in their lease agreements in shopping malls to allow for more competition.
The multimillion-rand sector came into focus earlier this year when Massmart lodged a complaint with the Commission alleging that retail giants blocked rivals from accessing malls.
Speaking at the Annual General Meeting, Pick n Pay chairperson Gareth Ackerman said some of the Commission's findings would damage the interests of consumers.
"We were concerned to read in late May of the findings of the Competition Commission inquiry into the retail sector. We have engaged extensively and constructively with the Inquiry team and will continue to do so," Ackerman said.
"This includes areas where we believe that their findings are based on errors of fact or interpretation, and where their draft recommendations would damage the interests of consumers."
In its provisional report on the grocery retail market inquiry in May, the Competition Commission said the formal grocery sector has high levels of concentration.
The Commission said Shoprite, Pick n Pay, Spar and Woolworths together have a 72% market share and that long-term exclusive lease agreements reinforce market concentration, excluding challenger retailers and specialist stores.
Ackerman said Pick n Pay will continue to work with the Consumer Goods Council, BUSA and others in partnership with the new government, adding that South Africa has lost too many years and it was now time to put the foot on the accelerator.
Comments
Research Reports
Latest Multimedia
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
