Competition watchdog says Shoprite failed to convince it to adopt exclusivity amendments

The Competition Tribunal has rejected most of Shoprite’s proposed amendments to its consent agreement with the Competition Commission.

1. Shoprite initially agreed to immediately eliminate exclusivity provisions in non-urban areas.
2. Pick n Pay only agreed to stop enforcing exclusivity provisions against small, HDP-controlled supermarkets.
3. Shoprite wanted to incorporate exclusivity provisions for existing lease renewals except for SMMEs, specialty and limited-line stores and HDP supermarkets, like Pick n Pay.
4. Shoprite argued the differences created market distortions between itself and Pick n Pay.
5. Eliminating exclusivity in non-urban areas impacts the most vulnerable consumers.
6. Allowing Shoprite to maintain exclusivity for existing lease renewals would not significantly distort competition.
7. The tribunal has granted Shoprite an extra two years, until end 2026, to phase out exclusivity provisions, aligned with Pick n Pay’s deadline.