Aisles inside a Checkers supermarket in Durbanville, Cape Town
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Mall grocery exclusivity ends 31 December. What it means for you

· Reported Team

Husskeyy via Wikimedia Commons, CC BY-SA 4.0

Every remaining exclusive grocery lease in South Africa's shopping centres must be cancelled by 31 December 2026, and from January 2027 Shoprite, Pick n Pay and Spar may not sign new ones, the Competition Commission has confirmed (BusinessTech, Business Day).

Commission spokesperson Siyabulela Makunga said no exclusive leases will be allowed to remain after the year-end deadline (Business Day).

What is an exclusive lease?

It's a clause in a mall lease that gives one supermarket chain the sole right to trade as a grocer in that centre, keeping other grocery retailers out (Competition Tribunal). Some of these leases ran for decades.

Which supermarkets are affected?

Only Shoprite (including Checkers), Pick n Pay and Spar. Woolworths and Food Lover's Market are not affected because they had no exclusive leases, according to the commission (BusinessTech).

"It affects all landlords with grocery exclusivity clauses, though many wanted them scrapped anyway," Makunga said (BusinessTech).

Why is this happening now?

The deadline comes from the commission's Grocery Retail Market Inquiry, published in December 2019. It found long-term exclusive leases limit consumer choice and make it harder for smaller and emerging retailers to get into shopping centres (Competition Tribunal).

The three chains then signed consent agreements with the commission, which the Competition Tribunal made binding orders:

Under those agreements the chains already had to stop enforcing exclusivity against small and medium businesses and against grocers owned by historically disadvantaged people. Existing clauses could not be renewed (Business Day). The 31 December date is the end of the phase-out.

Will my mall get a second supermarket?

Not automatically. The change removes the legal block, but whether another grocer moves in is up to the landlord and the retailers. Business Day reports that some landlords have already changed their tenant mix ahead of the deadline (Business Day).

What it opens up is room for a rival supermarket, a butchery, bakery or independent grocer in centres where one chain used to have the space to itself, which the commission expects to bring more choice on price, products and specials (BusinessTech).

FAQ

When do exclusive grocery leases in malls end?

All remaining exclusive grocery leases must be terminated by 31 December 2026. From January 2027, no new exclusive leases may be signed.

Which retailers are affected?

Shoprite, Pick n Pay and Spar. The Competition Commission says Woolworths and Food Lover's Market are not affected because they had no exclusive leases.

Does this mean every mall will get another supermarket?

No. It removes the clause that kept other grocers out, but landlords and retailers still decide who rents space.

Why were exclusive leases scrapped?

The Competition Commission's Grocery Retail Market Inquiry (December 2019) found they limit consumer choice and make it harder for smaller and emerging retailers to enter shopping centres.

Sources

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