South Africa’s big four grocery retailers are squeezing everyone else out of the market and making it impossible for independent businesses to survive, a Competition Commission inquiry has heard.
As Mphuti Mphuti’s testimony before the Competition Commission’s Grocery Retail Inquiry drew to a close, he paused for a moment. “Just talk to Mr Whitey Basson, just talk some sense into him,” he said. “I’m serious.”
Mphuti is the chairperson of Soweto Business Access. Earlier in his testimony, he had contrasted the R100m remuneration package received by former Shoprite Holdings CEO Basson in the last fiscal year to the plight of small, black independent retailers, who are being squeezed out of the market by South Africa’s big four grocery retailers – Spar, Woolworths, Shoprite/Checkers and Pick n Pay/Boxer.
Mphuti maintains that big business is insensitive to the socio-economic conditions in townships, choosing to only focus on profit, and not on the communities within which they do business.
According to Mphuti, malls in South Africa, which are dominated by large, established retailers, are killing off small, independent black-owned businesses.
He said the retail mall space is dominated by stores of JSE-listed companies.
“The malls are biased towards big business,” said Mphuti. “The shopping malls are an extension of the big business agenda.”
If independent black retailers are allowed into a mall, they are given short-term leases which are more expensive than the long-term leases provided to big business, claimed Mphuti.
He said often the only justification given for 12- to 18-month lease periods is, “We don’t trust you,” and that this practice essentially amounts to “rent protection” for big business at the expense of small black businesses.
Denne historien er fra 22 June 2017-utgaven av Finweek English.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra 22 June 2017-utgaven av Finweek English.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
