NASSAU, BAHAMAS — Bahamas Retail Grocers Association president Philip Beneby yesterday warned that the government’s decision to add 38 extra food items to the price control regime would “cut deep” into the profit margins of local retailers, adding that some may not last the six month trial period of the regime’s expansion.
Prime Minister Philip Davis KC during a televised national address Tuesday night acknowledged the high cost of living in the country as he pledged that his administration is doing more to tackle the issue.
Davis announced that the government has added 38 new items to be subject to price controls in the country.
“We are limiting the wholesale and retail markup of everyday items like diapers, and food like chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes. These items are being added for at least a 6-month period, at which point we will review and evaluate the impact on businesses and consumers,” said Davis.
Beneby expressed surprise at the announcement when contacted yesterday.
“This is the first time I’m hearing about it. I’ll say this, If they add 38 items to the Price Control list we might as well shut down, we might as well close the doors. The smaller convenience stores, something like that will put them out of business without a doubt. I don’t know what the formula is going to be to determine the impact but some businesses may not last six months. You may be owing so many of your suppliers in that period. That’s a long time. That’s cutting deep into your profit margins,” said Beneby.
Beneby warned that retailers were also being challenged by increased operational costs, noting that high inflation would still impact the cost of items on the price-controlled list.
“BPL has increased, insurance has increased, the cost of living index has gone up several times and NIB contributions have increased,” he said.
“You also have those who have to pay rent or have to make loan payments to the bank. Things are not easy and I can tell you that if 38 items are going on the price-controlled list there are going to be challenges. It’s troubling, very troubling. I hope they start some dialogue with the grocers,” said Beneby.
