Competition Commission hopes to clamp down on unfair practices in retail sector

The Competition Commission is concluding the Tshwane leg of its public hearings in the inquiry into the South African grocery retail sector.

Industry leaders will submit presentations to the inquiry over the next three days before moving on to its next leg in Johannesburg‚ which will run from Thursday to Friday.

Sipho Ngwema, Competition Commission spokesperson says what is interesting in KwaZulu-Natal is governments intervention efforts to ensure everything is done for small businesses to thrive as well as to introduce regulation and better manage the sector.

In many cases people are complaining that their businesses have gone down or wiped out completely because of the bigger retailers entering the markets in townships.

Sipho Ngwema, Competition Commission spokesperson

We must also consider the positives attributed to the arrival of larger retail and supermarket stores in some townships.

Sipho Ngwema, Competition Commission spokesperson

It is looking into four specific objectives:

• The impact (negative and positive effects) of the entry of national supermarket chains into townships‚ peri-urban areas‚ rural areas and the informal economy

• The impact of long term exclusive lease agreements and the role of financiers on competition in the grocery retail sector

• The impact of regulations and by-laws on competition in the grocery retail sector

• The impact on competition of buyer groups and the buyer power of purchasers of fast-moving consumer goods in the grocery retail sector.

Ngwema goes on to say that they will be evaluating and make recommendations on the impact of bulk buying and exclusive agreements prominent found in malls.

We are fairly confident that we will wrap recommendations by the end of the year explains Ngwema.

Listen to the interview in the clip below:

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