The Competition Commission (Commission) hosted an online workshop with the South African Property Owners Association (SAPOA) on Monday, 17 November 2025, for shopping centre owners, property funds and property developers to discuss the concentration issues, and barriers to entry facing small and independent community pharmacies. The Commission also promoted competition principles for the entry and retention of independent community pharmacies in shopping centres.
The workshop is part of the Commission’s advocacy initiative aimed at raising awareness of the Competition Act 89 of 1998 (as amended) and to foster a growing, inclusive and deconcentrated economy for the participation of independent community pharmacies that are mostly small and medium enterprises (SMEs) and businesses owned and operated by historically disadvantaged persons (HDPs).
Commission staff facilitated discussions on the following competition concerns: Early termination or non-renewal of the independent community pharmacies’ lease agreements in shopping centres, leading to their exit and the subsequent entry of corporate pharmacies; high rental costs, additional costs, and unfavourable trading terms that independent pharmacies face, and which are not imposed on corporate pharmacies; and corporate influence on tenant mix in shopping centres, leading to exclusion or limited participation of SMEs and HDPs.
SAPOA welcomed the engagement with the Commission. “We hope that the industry and in particular the members gain meaningful insight into the matter,” Neil Gopal, the CEO said.
“The growing market share of corporate pharmacies and the disadvantages faced by independents suggest that the pharmacy retail market is rapidly moving towards a less competitive market structure,” the Commission’s Acting Divisional Manager of Advocacy, Bukhosibakhe Majenge, explained. “The inability of independent community pharmacies to secure or retain tenancy in shopping malls has a 2
negative impact on competitive rivalry with the corporate pharmacy groups especially in urban and underserved communities and affects the promotion of consumer choice.”
The Commission’s Grocery Retail Market Inquiry (GRMI) recommendations provide further guidance on the best practice for applying fair, transparent and commercially justifiable criteria in rental terms. Shopping centre owners, property funds and developers may access the information at https://www.compcom.co.za/retail-market-inquiry/.
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