IN TIMES of escalating prices of goods and services, vigorous competition between grocery retailers or supermarkets can result in a much-welcome price reprieve for consumers of basic foods.Greater competition has the added benefit of offering consumers a wider choice of quality products and services. Not only does a competitive, modern retail sector benefit consumers, it plays a major role for suppliers, as supermarkets are a key route to market for their products.Yet, the South African supermarket industry remains concentrated, with large, well-known names — Shoprite/Checkers, Pick n Pay, Spar and Woolworths — dominating this space.This reflects the high barriers to entry faced by new players wanting to enter and grow in the industry, as shown in a recent study by the Centre for Competition, Regulation and Economic Development at the University of Johannesburg.Barriers to entry and how they can be overcome are especially relevant for policy makers in SA, where there are significant...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.