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Cape Town – Shoprite Checkers [JSE:SHP] obtained an interim interdict against Mass Stores and Hyprop Investments in the Western Cape High Court on Tuesday.
The interim interdict prohibits and restrains the Mass Stores [JSE:MSM], owned by the US retail giant Walmart and operating a Massmart Game store in the Cape Gate Shopping Centre, from using any part of the shopping centre in Brackenfell, Cape Town, for selling certain food items and liquor.
In terms of this interim ruling Mass Stores is prohibited and restrained from operating as a supermarket or grocery store by selling products like bread, chilled chicken, processed meats, cheese, creams, yogurts, eggs, fresh milk and meat.
Mass Stores is also temporarily prohibited and restrained from using any part of the Cape Gate Centre to operate as a butchery, bakery, fish shop, fruit and vegetable shop, a dispensary or delicatessen.
By selling the listed items and having the listed speciality offerings Shoprite Checkers claims the Massmart Game store in Cape Gate is competing directly against its outlet in the same mall.
Shoprite Checkers said in its court papers that there was little doubt that its sales would suffer at the Cape Gate centre if the Game store was permitted to sell the listed items and offer the speciality shops listed.
This interim inderdict is in place pending the outcome of Shoprite Checkers’ application for a final interdict in this regard.
Mass Stores has asked the Competition Commission to investigate the matter. Therefore, any declaration by the competition authorities regarding the validity of a certain exclusivity clause of Shoprite Checkers’ lease will also have to be taken in to account.
The exclusivity clause is part of the lease agreement which Shoprite Checkers entered into with the centre’s landlord, Hyprop. Shoprite Checkers’ current lease at Cape Gate is still valid for about 15 years.
In terms of the exclusivity clause Shoprite Checkers will be allowed to operate in the centre as the only supermarket, grocery store and liquor store, except for Pick n Pay and Woolworths.
These kinds of clauses usually help to ensure that anchor tenants of new shopping centre developments could be assured of limited competition.
Walmart has entered the SA grocery market by starting to introduce these kinds of grocery items at its Game stores.
- Fin24
The interim interdict prohibits and restrains the Mass Stores [JSE:MSM], owned by the US retail giant Walmart and operating a Massmart Game store in the Cape Gate Shopping Centre, from using any part of the shopping centre in Brackenfell, Cape Town, for selling certain food items and liquor.
In terms of this interim ruling Mass Stores is prohibited and restrained from operating as a supermarket or grocery store by selling products like bread, chilled chicken, processed meats, cheese, creams, yogurts, eggs, fresh milk and meat.
Mass Stores is also temporarily prohibited and restrained from using any part of the Cape Gate Centre to operate as a butchery, bakery, fish shop, fruit and vegetable shop, a dispensary or delicatessen.
By selling the listed items and having the listed speciality offerings Shoprite Checkers claims the Massmart Game store in Cape Gate is competing directly against its outlet in the same mall.
Shoprite Checkers said in its court papers that there was little doubt that its sales would suffer at the Cape Gate centre if the Game store was permitted to sell the listed items and offer the speciality shops listed.
This interim inderdict is in place pending the outcome of Shoprite Checkers’ application for a final interdict in this regard.
Mass Stores has asked the Competition Commission to investigate the matter. Therefore, any declaration by the competition authorities regarding the validity of a certain exclusivity clause of Shoprite Checkers’ lease will also have to be taken in to account.
The exclusivity clause is part of the lease agreement which Shoprite Checkers entered into with the centre’s landlord, Hyprop. Shoprite Checkers’ current lease at Cape Gate is still valid for about 15 years.
In terms of the exclusivity clause Shoprite Checkers will be allowed to operate in the centre as the only supermarket, grocery store and liquor store, except for Pick n Pay and Woolworths.
These kinds of clauses usually help to ensure that anchor tenants of new shopping centre developments could be assured of limited competition.
Walmart has entered the SA grocery market by starting to introduce these kinds of grocery items at its Game stores.
- Fin24
