In recent days Prime Minister David Thompson has resorted to using suasion to encourage retailers in Barbados to reduce prices to consumers. His plea has come in the aftermath of two reductions in fuel prices by government last week. Barbadians it seem have become accustomed to living in a high cost country. We have been told by some experts that it is a consequence of the high standard of living we enjoy relative to our neighbours, near and far.
The laid back nature of our consumer organizations, the monopolistic inclinations of the wholesale and retail sectors, the longstanding practice of under-invoicing goods sourced in the USA, the ineffectiveness of the Fair Trading Commission (FTC) which we were told would be the watchdog for Barbadian consumers, and last but not least the passivity of Barbadians and their aversion to retaliate to the juck out your eye policy of retailers in Barbados.
Yesterday’s Nation headline NOT SO, PM! may have crystallized the challenge Prime Minister Thompson and Barbadians will face as we attempt to battle retailers to achieve lower prices. Managing Director of SuperCentre David Neilands is quoted in the newspaper as saying ” Our supermarket was not putting up our prices as a consequence of oil increases; our prices have gone up as a consequence of the price of goods coming to us. In the case of the local industries . . . if the prices drop, then our prices will drop accordingly.” Mr. Neilands has been taking some flack because of the position he has taken but isn’t his statement correct? If the SuperCentre suppliers do not reduce their prices how can the Prime Minister reasonable expect SuperCentre to reduce prices? As Mr. Neilands has correctly pointed out they are running a business for profit and not a charity!
What has been made clear from the article is that SuperCentre has a price and supply model which has brought it success for more than a decade, so why should they change it?
As this juncture a project manager like Ian Walcott is forced to ask what will be the game changer? After all the ‘ole talk’ the PEOPLE are still suffering high prices at the cash register. It is an easy argument to say that Barbadians should shop with their feet but we have suggested earlier that that our market shows monopolistic and cartel like behaviour. The Barbadian customer is being screwed at every turn; something needs to give and very soon.
The new government has threatened to increase competition to the market by allowing new competitors to enter our market. So far the local retailers have seen this as an empty threat. However if we are to judge from what has happened before new competition will only temporarily reduce prices until the there is a comfort level. Our current crop of mega retailers and wholesalers seem comfortable accessing the tried and trusted supplier network, Mr. Neilands confirmed it. If this is the case how can Barbadians expect to see price changes? We have heard for many years now and Minister Chris Sinckler confirmed it last week, Central and South America is a ripe market for sourcing relatively cheap food. Despite this known position we appear to lack the will to make the game changer move.
It is our understanding that the major challenge to import from the South American market is the non-English which will appear on the labels and packaging. National and international standards require that as consumers we must be able to read details about what we are buying. We appreciate this hurdle but question if it is insurmountable. Our only fear is if a solution is found Barbadians would not have gotten so attached to brand names that we wouldn’t witness a consumer rebellion if no-name products were to appear on the shelves of local retailers. In all serious we need to have an urgent public private sector approach to sourcing cheap food. The business of feeding PEOPLE in the most economic way must be given high priority. This is also a good opportunity to attack the inflation number given the fact that we are a significant importer of goods and services.
By the way, weren’t Barbadians told that a benefit of the by Neel & Massy gobbling up Barbados Shipping & Trading would have been the opportunity to approach suppliers to benefit from larger trade discounts as a group?
The honeymoon period for the government is quickly expiring and yet we are mindful of the global turbulent economic times. The time for bold strategies to tackle the issue of providing reasonably priced food to our PEOPLE has come. If we wait on the SuperCentres of this world who are assured of profits in the current scheme, it will always be business as usual.
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