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Massmart in competition battle with rivals

Nov 03 2014 11:38

A sign displayed in Game at the Cape Gate centre on Tuesday. (Supplied by a Fin24 user)

Company Data

THE SPAR GROUP LIMITED [JSE:SPP]

Last traded 190
Change -2
% Change -1
Cumulative volume 177159
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

PICK N PAY STORES LIMITED [JSE:PIK]

Last traded 60
Change 0
% Change 0
Cumulative volume 857
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

MASSMART HOLDINGS LIMITED [JSE:MSM]

Last traded 45
Change 0
% Change 1
Cumulative volume 1195
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Johannesburg - Massmart Holdings has filed an anti-competition complaint against three major rivals to fight their exclusive leases with shopping centres, the discount retailer said on Monday.

The unit of Wal-Mart Stores said it had filed the complaint with South Africa's competition watchdog against grocers Shoprite [JSE:SHP], Pick n Pay [JSE:PIK] and Spar [JSE:SPP] over leases it says are anti-competitive.

Massmart, known for its Makro chain of wholesale stores, has been on a push to increase its grocery business. However, that effort has been hampered as some shopping centres have agreed to an exclusive lease with another grocer, spokesperson Annaleigh Vallie said.

The exclusive leases can last anywhere from five to 20 years, she said.

READ: Shoprite takes on Walmart

"The company is of the opinion that exclusive lease agreements are intuitively anti-competitive and prevent it from developing an offering that can compete effectively with the entrenched, national retail chains," Massmart said in a statement.

Shoprite is Africa's largest retailer and Pick n Pay is South Africa's second-largest grocer, trailing behind Shoprite.

Shares of Shoprite, Pick n Pay and Spar were all down around 1%, slightly underperforming the Johannesburg All-Share index, which was flat.

Massmart was also down nearly 1%.

READ: Game: Shut down by Shoprite




massmart  |  pick n pay  |  shoprite  |  spar  |  johannesburg  |  rentals  |  retail  |  competition
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