Shoprite's battle against competition from rival Walmart has taken a twist, with the South African retailer reportedly using exclusivity clauses commonly included in shopping mall lease agreements to challenge the legality of a Walmart-owned Massmart Game store in the CapeGate centre in Cape Town.
According to Business Day, Shoprite filed an urgent interdict at the Western Cape High Court against the Massmart Game directly competing against its outlet in the same mall.
Shoprite's legal challenge is based on an exclusivity agreement with CapeGate landlord Hyprop Investments, which allows it to operate as the sole supermarket, grocery store and liquor store in the centre, bar Pick n Pay and Woolworths, the paper reported.
Massmart corporate affairs executive Brian Leroni reportedly said Shoprite's interdict was "based on the mistaken perception that the Game lease agreement prevents Game from trading in non-perishable food" and that the "perception is inaccurate".
He added that the interdict appeared to be "an attempt to stifle legitimate competition by Game and is, by implication, prejudicial to South African consumers".
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