By Charles Tjatindi
Windhoek
The influx of foreign food chains into the local market has resulted in many small retailers closing up.
Now faced with having to compete against the remarkably lower prices set by these larger supermarkets, many retailers have found themselves out of business, while others are battling to survive on a hand-to-mouth basis for their businesses.
Most retailers housed at the former Katutura Central shops complex seem to be facing a bleak future, should the stiff competition from larger supermarket chains continue. What used to be a thriving business centre has now drastically been reduced to a low business complex with businesses there only just surviving, following the completion of the Shoprite complex some hundred metres away.
Local retailers are therefore calling on Government to place stricter requirements on foreign supermarkets wanting to set up operations in Namibia, and accord already existing smaller retailers priority.
“Our Government should think about us. We can simply not compete against those large multi-nationals. Government should protect us,” remarked Erastus David, a shop owner at the Katutura central shops complex.
He noted that his business’s profits were cut by more than two-thirds when Shoprite started operating. He also had to cut down on staff at another retailer owned by him in the Nubuamis suburb. This came after the completion of a new shopping complex adjacent to his business, which also houses Shoprite.
“There is no way out for us. We are suffocating. Shoprite and Woermann Brock are killing us,” said David.
Another businessman at the complex, Mondi Tjozongoro, echoed David’s sentiments, adding a call for the formation of an association that will advocate for lower prices from suppliers.
“Pick ‘n Pay and other supermarkets can afford to lower their prices because they buy in bulk. With us, each man has to fend for himself. I think if we all come together under on association, we can have a stronger voice.”
He called for Government’s intervention to halt the direct buying of the public from wholesalers, saying retailers lose out when that happens.
“Just look around, do you see how many home operated shops there are? They sell most basic necessities like sugar, milk and bread. Where does that leave us?”
Having been in business for close to 20 years, Tjozongoro notes that the last few years have been the hardest for his business. Pikeue Restaurant, which the family owns, has been moved from generation to generation, but with the completion of the Red Cross Shopping Centre, things suddenly changed. They found themselves operating on a shoestring budget that only allows them to get by.
“There is not much we can do. Sometimes we opt to operate until late, but there are a lot of cost implications involved in that as well. You have to pay your staff overtime, and safety is another issue,” remarked Tjozongoro.
Most retailers are now focusing on selling fast foods as a means of raking in much needed profits. Some even sell a limited amount of alcoholic beverages to supplement their profits. Although this helps, it stretches the operation of the business and often has high cost implications.
Perhaps if the Government makes it mandatory for foreign businesses to forge partnerships with locally existing ones, retailers might benefit, explained David. Such a requirement could be used as a basis for allocating trading rights.
“This is not something new. It is done in most other countries. Who knows, maybe it could help us,” David said.