Spar, Pick n Pay, and Shoprite END exclusivity at shopping malls

Spar, Pick n Pay, and Shoprite are causing significant changes in South Africa’s 2,000 shopping malls. Spar recently agreed, following mediation, to terminate long-standing exclusive lease deals by December 2026.

Additionally, they will promptly provide opportunities for SMMEs and HDP-owned supermarkets, as mandated by the Competition Commission.

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SPAR,PICK N PAY AND SHOPRITE END TO LONG-TERM EXCLUSIVE LEASE AGREEMENTS

According to Business Tech Spar joins Pick n Pay and Shoprite in bringing an end to long-term exclusive lease agreements.

The Commission stated that the consent agreement will undergo confirmation by the Competition Tribunal, ultimately fostering fairness and competition, benefiting consumers nationwide in South Africa’s grocery retail market.

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The Competition Commission stated that the consent agreement, submitted for confirmation by the Competition Tribunal, aims to enhance fairness and competition in South Africa’s grocery retail market, benefiting consumers nationwide.

Spar’s agreement aligns with recommendations from the Grocery Retail Market Inquiry (GRMI) and follows similar consent agreements made with Shoprite and Pick n Pay.

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Together, these agreements encompass all national chains that previously held exclusive lease agreements.

These exclusive leases by Shoprite, Pick n Pay, and Spar applied to nearly 2,000 shopping malls and convenience centers across the country, preventing other grocery supermarkets from competing in those locations.

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For Spar-owned stores, they won’t enforce exclusivity against small businesses and specialist shops, except for national chain franchises in the first year, but this changes later.

The Spar Group won’t use exclusivity clauses in new leases and will stop enforcing them against all competitors by December 2026.

They’ll also persuade Spar retail members to follow these rules within a year from signing.

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