Competition Commission urges small businesses to report unfair treatment

YNews had an exclusive conversation with the Competition Commission’s Acting Deputy Commissioner and Chief Economist, James Hodge, who emphasised the need for small business to approach them with cases of unfair business practices they may find themselves subjected to.

This falls on the backdrop of a recent report that Keyalena (Uranium) Pharmacy has been given 45 days to get out of Fourways Gardens Centre, allegedly before its lease expires at the end of 2026, to make way for retail giant, Clicks Pharmacy.

YNews has reached out to the manager of Fourways Gardens Shopping Centre, Julie Pryce, who declined the request to probe her on the matter.

Hodge says the commission is aware of numerous cases of small business being replaced by bigger national chains.

“We do think that businesses that are treated badly must come forward with complaints and then we can investigate to determine what has happened. We are really concerned by this trend that we see, and this is not the first story we’ve heard,” says Hodge.

Hodge adds that the licenses granted to small businesses often limit growth. He cites local pharmacies and liquor stores as some of the most affected businesses.

“We have heard of many national chains speaking to landlords and pushing out smaller business. The problem with local pharmacies is really that once someone has a license for that area, they can’t locate very far away and so it really destroys the business entirely,” explains the Competition Commission’s Acting Deputy Commissioner and Chief Economist.

He says some big chains, managing multiple businesses, present landlords with requests to place the bulk of their business in one complex, which often results in the relinquishing of smaller business located there.

“We did have an enquiry many years ago into grocery retail. We found that there were exclusive leases, which meant that other businesses that competed with the grocer couldn’t enter the retail. Luckily, we addressed the issue, and the retailers signed a settlement. This gave us an insight of what is happening at the malls and how these malls are often dominated by these chains with very little space for local small businesses,” says Hodge

Hodge adds that there is also close to no opportunity for business in township areas to receive a substantial platform within retail malls.

He believes that more spaces need to be created for local business to thrive as more people, especially the youth, express the desire to launch their own brands rather than relying on being employed by others.

“We need to address the issue of not enough space being offered to local brands in retail spaces because if you can’t access consumers, you can’t grow your business and you can’t be an independent entrepreneur.”

Hodge stresses that businesses, which are challenged unfairly in retail spaces, should resort to lodging complaints with the commission.

“I’d be interested to see businesses that may have had a similar experience, come forward, so that we can look into the investigation behind the matter and see whether it is warranted or not,” he says.

Hodge also suggest that South Africa’s economy should be inclusive of all types of businesses.

“We have to have an inclusive economy; we can’t just have one that only serve certain needs,” add the economist. Written by Odirile Rabolao