Publications
Partners
Johannesburg - Shoprite is using exclusivity clauses commonly included in shopping mall lease agreements to challenge the legality of a Walmart-owned Massmart Game store in the CapeGate centre, Business Day reported on Wednesday.
Shoprite filed an urgent interdict at the Western Cape High Court recently, against the Massmart Game directly competing against its outlet in the same mall, the paper reported.
CapeGate landlord Hyprop Investments allows Shoprite to operate as the sole supermarket, grocery store and liquor store in the centre, barring Pick n Pay and Woolworths, the paper reported.
According to the paper Massmart's Game brand rolled out its Foodco business, which introduces a wider food range to Game, in September at the mall.
Massmart corporate affairs executive Brian Leroni reportedly said Shoprite's interdict appeared to be "an attempt to stifle legitimate competition by Game and is, by implication, prejudicial to South African consumers".
The matter was referred to the Competition Commission for investigation, Leroni reportedly said.
