by BARRY ALLEYNE

DISCOUNT SUPERMARKETS in Barbados are dying. In fact, they may be dead, and the fall-out is a multimillion-dollar bill owed to wholesalers across the country.

That was the sorry picture painted by some supermarket owners, who claim discount stores aimed at attracting low-income shoppers were falling like tenpins across Barbados.

And according to Senator Andrew Bynoe, larger supermarkets are the ones staying in business even though their net profits are dropping due to heavy competition, high wages and the millions lost every year to theft.

Bynoe, also the managing director of Carlton & A1 and Emerald City Supermarkets, said there are a number of factors involved in pricing for consumers, but that most shoppers in Barbados are not being disadvantaged when they fill up their carts.

Bynoe was speaking in response to two articles which appeared in the last SUNDAY SUN, where Government revealed its concern in a number of discrepancies in prices for the same goods across supermarkets on the island.

No problem

Bynoe said he had no problem with Government revealing the discrepancies, but warned that Barbadian consumers were not stupid, and knew where and when to save on "specials" and "discounts" at almost every supermarket in Barbados.

Audley Jordan, of Jordan Supermarkets, said larger supermarkets had to be very careful working out their profit margins, or they could actually price themselves out of the market in a very competitive environment.

"We are all trying to make a profit, but we all realise there is only so high or low we can all take our prices," he told the WEEKEND NATION. Jordan said the SUNDAY SUN's article wasn't necessarily a true reflection of the entire industry.

High mark-ups

"Some people would think we have very high mark-ups, but the fact is that we don't make that much of a huge profit from mark-ups."

Jordan added that what was hurting larger supermarkets was large salaries, something which discount stores escape by paying most of their employees minimum wage.

Bynoe said he understood the need for discount stores, but noted most in Barbados had closed after being open for less than five years, and over the last decade had piled up more than $30 million in debt to wholesalers.

"These discount stores don't last, and that is clear over the past five years. History has shown that in this industry to operate at a profit there must be reasonable profit margins on goods bought, especially in the face of limited capital," Bynoe said.

The long-time supermarket executive noted the smaller discount stores were also unable to handle the level of theft that prevails in the industry.

Can cripple a business

"The theft in the supermarket business is to the point of being ridiculous. It comes from inside and outside, and can cripple a business with small capital," Bynoe added.

The senator noted that consumers were quite aware of what they were getting, and what they were paying for. He cited examples of understandable price discrepancies, as in the grading of meats and cheeses.

"Consumers know in particular stores they can buy lamb, for example, which has plenty fat and is at a cheaper price from a store that has a different grade of meat, and with no fat whatsoever."

* barryalleyne@nationnews.com