The decision to lift a four-year moratorium on supermarkets (see Saturday edition) led to quite some speculation over the weekend. People were wondering for which entrepreneur wanting to open a new food store this was being done.
While a major supermarket recently changed hands, it can’t be considered new. Work is being done at the former Fresh Market in Madame Estate, but no information on any plans for that location has been provided.
The Ministry of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) explained that Government needs to facilitate the further development of the industry and mitigate the impact of its current composition and quality of service on the local economy particularly after Hurricane Irma. The goal is to stimulate employment creation and price reduction due to increased competition.
In a free market the latter is indeed important, but there are many factors, including being on an island shared by two countries with open borders. In addition, affiliation with large chains elsewhere also plays a role.
Of course, there is the basket of so-called basic commodities for which Government determines maximum prices, but that is limited in scope. Perhaps enhanced controls in this area are needed, because the impression exists that the set rates are not always respected.
According to the latest statistics, St. Maarten’s average prices in October 2017 were 0.9 per cent higher than two months earlier, but since then things at least seem to have gotten considerably costlier. In that sense, allowing more players in the supermarket field – regardless of who it is – might not be such bad idea, although one must remain careful not to hurt already-struggling existing businesses with all possible consequences.
Government also regularly publishes price comparisons for common goods that can be quite helpful when choosing where to buy what. The last one, which appeared in the paper of February 21, was focussed on dairy products, but more extensive listings will no doubt follow in the future.
Advertisements frequently placed by major supermarkets with their specials are also a way to check what the best options may be.
In general, people should simply become more aware and price-conscious themselves when grocery shopping. That, ultimately, is the power of the consumer.
