Spar investigated for blocking OBC from trading in South African malls
South African grocery store, Spar has come under fire after it was accused by a local butchery, OBC, of blocking it from operating at malls. While Spar has since rubbished the claims, the Competition Commission has confirmed receiving a complaint from OBC. According to Moneyweb, Siyabulela Makhunga says the matter between Spar and OBC is
Spar investigated for blocking OBC from trading in South African malls
South African grocery store, Spar has come under fire after it was accused by a local butchery, OBC, of blocking it from operating at malls.
While Spar has since rubbished the claims, the Competition Commission has confirmed receiving a complaint from OBC.
According to Moneyweb, Siyabulela Makhunga says the matter between Spar and OBC is under investigation.
Spar has allegedly failed to comply with the Competition Commission’s recommendations which allow retailers to end exclusivity lease agreements with shopping mall owners.
Makunga also said if Spar is found guilty, the grocery store could be slapped with a hefty multi-million rand fine.
“The matter is currently being investigated. If found guilty, Spar may be liable to pay an administrative penalty of up to 10% of their total revenue calculated for the period of a contravention,” he said per Moneyweb.
It is now reported that the fine or complaint comes as Spar registered total revenue of more than R138 billion for its full year to the end of September 2022.
BusinessTech Africa has discovered that the complaint was tabled on November 04 by OBC managing director Tony Da Fonseca, who said landlords are being prohibited from renting space in their shopping centres to Spar’s competitors.
“While attempting to conclude lease agreements for available space in various shopping centres where Spar is the anchor tenant, the landlords have openly communicated to us that they cannot conclude a lease agreement with us, as Spar is enforcing their exclusivity clause,” said Da Fonseca.
Moreover, Da Fonseca put it on record that their company, OBC, has been barred from trading in shopping centres such as Hubyeni Shopping Centre in Limpopo, KwaMashu Shopping Centre in KwaZulu-Natal, Gugulethu Square in the Western Cape, and Setsing Plaza in the Free State.
Spar has also issued its response to the complaint by OBC, saying they always negotiate lease agreements to ensure that stores are sustainable.
“The Spar group has six distribution centres, servicing more than 2 000 stores in South Africa,” the retailer told Moneyweb.
“We always negotiate lease agreements that ensure that stores are sustainable in the long term.”
