Food retailing in South Africa remains competitive with the leading players “scrapping” for market share, the CEO of Spar’s operations in the country insisted today (1 July).
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Wayne Hook said he is unworried about the prospect of an investigation into South Africa’s grocery sector and the claims that the market is facing a concentration of “buyer power”.
On Monday, the South African Competition Commission launched its probe into the country’s major supermarket chains – Spar, Woolworths Holdings, Pick ‘n Pay and Shoprite – for “alleged contraventions” of competition law.
Wholesalers Massmart and Metcash have also been pinpointed by the Commission, which plans to study various allegations including long-term, exclusive lease agreements and supply deals, as well as a sharing of information on price between the major chains.
Hook, however, dismissed claims of collusion between the rival supermarkets. “Nobody is sitting around a table saying we’re going to fix the price of milk or yoghurt,” Hook told just-food. “We’ve got nothing to hide and I’ve told [the Commission] to visit us as soon as possible.”
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By GlobalDataSouth Africa’s food retail sector remains divided between the formal, “measured” market and the country’s traditional stores, Hook said. The measured sector accounts for “60-70%” of the market, with some 850 Spar stores throughout the country.
Hook acknowledged that there had been food inflation in South Africa but pointed to macro-economic factors including the weakening rand.
