Competition hurting mom and pop grocery stores

Tue, Jul 12th 2011, 11:54 AM

The struggle for survival of "mom and pop" grocery stores doesn't start and end with diminished profit margins and increased operating costs, with at least one grocery store owner saying competition from the bigger players in the market is posing a greater challenge.

Owner of Courtesy Supermarket on Carmichael, Road Phillip Beneby told Guardian Business last week that it has become tougher to survive and remain profitable in the grocery business due to the large footprint larger chains such as Phil's and Solomon's have, which makes it harder for businesses of his kind to remain afloat.

"As far as what the smaller, independent retail food store operations are [dealing with], we are at a disadvantage compared to larger operations in that we aren't able to purchase like they do in terms of quantity," Beneby said.  "Because we're not able to get the prices we want we can't compete and that even includes breadbasket commodities.  Those factors along with others really hurt our profit margins."

The "mom and pop" stores - also known as community grocery stores - have been a staple in many neighborhoods in The Bahamas and found their niche even among chains such as Super Value and City Market.  However, with operations such as Solomon's, Robin Hood and Phil's adopting more of a "superstore" theme - offering a wider variety and affordable prices -- more customers are shopping at those stores.

Beneby mentioned that competition from the bigger players in the market isn't the only factor making the road tough; business-related expenses also play a big part.  "On the other side of things the operating costs have an impact too.  You have electricity and other bills that are high and other business-related expenses, then you have NIB (National Insurance Board) and real property taxes along with business licenses and that has affected our margins.

"It's a struggle going forward especially if the economy doesn't turn around, it's not an easy task but we try to do all of the small things that we can do in terms of service and commitment to the customer.  "The Courtesy owner added that customer loyalty over the years goes a long way in terms of keeping the business afloat.  His store's longstanding reputation has enabled his business and other community grocery stores to keep their doors open.

"Courtesy has its share of committed customers who are committed to Courtesy as far as our service and item selection, and try to patronize us as much as they can," he said.

Click here to read more at The Nassau Guardian

angie  Tue, 2011/07/12 - 12:54 PM

why should you pay more? everyone is finding it tough. You have to go to the cheapest store.


 Sponsored Ads