Competition Commission hears impact of grocery retail giants on small business

The managing director of a Johannesburg based buying group and wholesaler, Louis Greeff, says there is a structural problem within the retail industry, giving big retail groups a monopoly over suppliers.

EST Africa negotiates for over 70 independent retailers.

The Competition Commission kicked off it's inquiry into the grocery retail market on Monday, as part of an ongoing investigation into reports of unfair competition practices within the sector.

READ: Investigation into the impact of big retailers on township economy ALSO READ: Commission probes "big four" supermarket chains

Greef has told the commission that big retailers are abusing their buying power.

The structural problem that has developed, the big four - Shoprite, Checkers, Pick n Pay, Walmart and Spar - are the one-stop shop for all the suppliers. But with this power base they have built up based on their buying power, I think we at a stage now where there is an absolute abuse of this power taking place. Suppliers are being kept responsible for every need and every desire that these four might think about and need from a supplier.

Louis Greeff, Managing Director at EST Africa

We have no problem, they can open another 200 stores in the township but the issue that we have is that they come from a position where they are being favored so much and force suppliers into so many support agreements that the trading environment and that the opposition is not a fair opposition.

Louis Greeff, Managing Director at EST Africa

Create a leveled playing field for us, then a small independent trader can compete with them.

Louis Greeff, Managing Director at EST Africa

Click on the link below to listen to the full interview....


This article first appeared on 702 : Competition Commission hears impact of grocery retail giants on small business


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
[LISTEN] Sapo-Sassa deal moves one step forward - Mark Barnes

[LISTEN] Sapo-Sassa deal moves one step forward - Mark Barnes

Sapo will now be handling the core functions of the new social grants system.

Political Desk:  NDPP ruling demonstrates Zuma's delaying tactics - Karima Brown

Political Desk: NDPP ruling demonstrates Zuma's delaying tactics - Karima Brown

On Friday, the High Court ordered that President Jacob Zuma have no say in the appointment of a new NDPP.

Sassa and Sapo deal indicates a commitment to court ruling  - Jeff Radebe

Sassa and Sapo deal indicates a commitment to court ruling - Jeff Radebe

Sapo and the South African Social Security Agency (Sassa) have signed a landmark deal.

Investigation into the impact of big retailers on township economy

Investigation into the impact of big retailers on township economy

Competition Commission Sipho Ngwema says they will be investigating various issues in the grocery retail market inquiry.

Commission probes "big four" supermarket chains

Commission probes "big four" supermarket chains

The commission investigates whether there is any distortion of competition by Shoprite, Pick n Pay, Spar, and Woolworths.

Household chores that listeners really can't stand (or can't live without)

Household chores that listeners really can't stand (or can't live without)

Domesticity not your thing? Imagine a life free of grocery lists or dirty pots and pans... If only.

Popular articles
[LISTEN] 'We are dealing with an outbreak of Listeriosis' - Dr Thomas

[LISTEN] 'We are dealing with an outbreak of Listeriosis' - Dr Thomas

Head of the Centre for Enteric Diseases at the NICD Dr Thomas says that Listeriosis is problematic because it isn’t notifiable.

Publisher saves South African students billions with free textbooks

Publisher saves South African students billions with free textbooks

This year we're going to hit a million downloads of free textbooks in SA - James van der Westhuizen, country manager for Bookboon.

‘Conflicted’ Zuma will never again have say in appointing NPA boss, court hears

‘Conflicted’ Zuma will never again have say in appointing NPA boss, court hears

Shaun Abrahams is no longer the National Director of Public Prosecutions and President Zuma can't appoint his replacement.

Steinhoff money woes and why you should care

Steinhoff money woes and why you should care

The company lost around R100 billion leaving the JSE reeling in one of the biggest private sector business scandals.

Few retirement funds unaffected by Steinhoff implosion (i.e. you just got had)

Few retirement funds unaffected by Steinhoff implosion (i.e. you just got had)

Your money, and Steinhoff… Bruce Whitfield interviews Certified Financial Planner Peter Calitz.

‘There were clear warning signs at Steinhoff. All of which fund managers missed’

‘There were clear warning signs at Steinhoff. All of which fund managers missed’

The Money Show’s Bruce Whitfield interviews Sygnia Group CEO Magda Wierzycka.

Zille: 40 000 affordable housing units in the pipeline for WC

Zille: 40 000 affordable housing units in the pipeline for WC

Western Cape Premier Helen Zille says the government plays a crucial role in the provision of affordable housing in the province.