Study finds group does not promote local economic development

Business Day, 15 April 2009

FOOD and furniture retailer the Shoprite Group has been rapped on the knuckles by nongovernmental organisation Bench Marks Foundation for running outlets that do not give back to the local economy.

CEO John Capel said this week that a study in Malawi, Swaziland and Zambia last year found Shoprite was not promoting local economic development.

It was found that Shoprite jeopardised local businesses, did not include local farmers in its supply chain, was doing well on HIV/AIDS projects, underpaid staff and did not report on social investment projects in Southern African Development Community countries other than SA.

In the countries surveyed, particularly in Zambia, local farmers and producers complained about Shoprite, and said they were losing out to big supermarket chains.

The farmers alleged that this was because either they did not meet Shoprite supply standards or they could not compete with Shoprite imports. Sustainable economic development was not taking place, leaving host communities angry and poor.

Full story at http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A980576