Resilient calls for exclusivity clauses ban
Johann Kriek, executive director of a top South African shopping centre owner, says ‘protectionist’ exclusivity clauses inhibit retail trade in SA
One of the largest owners of South African shopping centres, Resilient Reit, told a Competition Commission inquiry on Tuesday that exclusivity clauses served no purpose for landlords or the general economy and should be outlawed in SA. Johann Kriek, executive director at Resilient Reit gave the submission to the commission, where he answered questions about how leases vary between anchor tenants and line stores as well as about how shopping centres supported retailers by bringing in foot traffic to towns. The commission is holding public hearings this week as part of the inquiry into the grocery retail sector. The inquiry began on November 27 2015. The probe includes a study on exclusivity clauses. These are clauses where an anchor tenant, for example a national food retailer, signs a lease trade in a mall, with the condition that other national food retailers may not trade in that mall. Many landlords have stressed that these clauses are archaic and do not help smaller retailers to...
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