General: Grocery retail market inquiry summary gazetted

A summary of the Competition Commission’s grocery retail market inquiry findings and recommendations was gazetted yesterday, following the publication of its full report on Monday. Tuesday’s edition of Legalbrief Today included an article explaining the rationale behind a recommendation that SA’s largest supermarket chains ‘immediately’ cease enforcing exclusivity provisions in their lease agreements with shopping malls. This is noting their negative impact on small grocery retailers and specialist stores (Business Day). However, the media gave less attention to a recommendation that government provide ‘competitiveness support for spaza shops and small independent retailers’, notes Pam Saxby for Legalbrief Policy Watch. 

According to the summary document, this support could include facilitating the establishment of distribution centres in peri- and non-urban areas; incentives for developing innovative commercial models for private businesses offering advice and assistance to ‘small informal spaza shops’; and removing regulatory obstacles at national, provincial and municipal level to the survival of street traders and spazas. Addressing a media gathering on Monday, inquiry panel chair Halton Cheadle referred to the ‘noticeable decline in South African-owned spaza shops’ following the introduction of national grocery chains and ‘immigrant retailers’ in areas previously served almost exclusively by these outlets.