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South Africa: Grocery giant demands exclusive rights in malls

By  |  August 11, 2014

South Africa conglomerate Pick n Pay is reportedly demanding shopping malls to enforce exclusivity agreements in efforts to stop a rival grocery chain from operating in the spaces.

Reports say Pick n Pay has sent letters to at least 20 shopping centers around the nation demanding that the malls enforce exclusivity clauses with the company and to bar rival Massmart from operating its Foodco groceries in the shopping centers.

Massmart has reportedly asked the nation’s Competition Commission to intervene, but the watchdog found last January that it did not have enough evidence that the exclusivity clauses in contracts constitute anticompetitive behavior. Pick n Pay reportedly used that ruling to justify the letters it sent to the malls.

According to reports, this is not the first time grocers have utilized exclusivity agreements. Las October, supermarket rival Shoprite banned Massmart from selling certain food products at a certain mall n Cape Town.

Full content: SA Commercial Prop News

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