A Shoprite outlet in the township of Esikhawini in Richards Bay in northern KwaZulu-Natal has been told to stop selling purified water to local residents, as it is taking away business from budding businesses and locals.
The chilling demand came from a small group of business owners who had been selling water in the township for years until Shoprite came in and sold it cheaper.
In a letter dated August 19, Dr Siphelele Shabalala said Shoprite can survive without selling the water and leave it to them as small businesses.
“We, the undersigned small business owners and operators of water purification shops in Esikhawini township, wish to raise our grievance formally regarding Shoprite Esikhawini Mall’s recent decision to sell purified water refills in-store.
“As local entrepreneurs, our businesses rely solely on the sale of purified water. Unlike Shoprite, which offers a wide variety of commodities, including fast food, fruit and vegetables, household appliances, and groceries.
“We have no other stream of income to sustain our livelihoods. The introduction of water refills at your store has had a severe and direct impact on our businesses, with many experiencing drastic drops in sales, and some even being forced to close permanently,” Shabalala said in the letter sent to Shoprite on behalf of the group.
Local economy undermined
Shabalala added that they believe that this practice is not supportive of the local economy or community development.
“Instead, it undermines small, independent businesses that have invested their resources, time, and effort into providing an essential service to the residents of Esikhawini.
“As a major retail chain with significant market power, Shoprite’s entry into our sole line of trade risks creating a monopoly, leaving little to no room for local competition,” he added.
Shabalala confirmed to Sunday World that they wrote to Shoprite, and they have asked the City of UMhlathuze to check if the retail giant is not violating its trading licence by competing with small township businesses.
The mayor of Umhlathuze, Xolani Ngwezi, confirmed that Shabalala and his colleagues have reached out.
“I heard that from him [Shabalala]; however, I have no confirmation from the city manager. I will only get information on Tuesday,” Ngwezi said.
