Badrul Ahsan :
Burdened by losses and uneven competition, as many as 25 superstores have folded their businesses in recent years and many others may follow them, people familiar with the situation said.
Although a new generation of entrepreneurs entered the supermarket business, they said, a lack of policy support and uneven competition from traditional shops have caused their ventures to bleed.
Amra Supershop, Nandan Supershop, Sadia Supermarket, Pacific Supermarket, Hut Bazar, PQS, A to Z Shopping Mall, Best Buy Supermarket, City Supermarket, Destiny Shopping Mall, Leeds Shopping Mall and Central Mart are among the Supermarkets that shut their door in the last couple of years.
“We’ve introduced an organised shopping system in the country and ensured quality, hygiene and safety issues of goods, but many of our fellow businessmen were forced to close their business for lack of government’s policy support,” Md Zakir Hossain, owner of 3S Shopping Mall, told The New Nation Thursday.
“Traditional grocery shop owners are paying a lump sum amount as government duty. On the other hand, Supershop owners pay up to four per cent as duties and corporate tax and others, throwing us into an uneven competition,” he said.
“Besides, we cannot keep our shops open after 8 pm – the peak hour of such a business. On the other hand, traditional shops can continue their business as long as they want which is clearly discriminatory,” said Zakir Hossain, who is also General Secretary of Bangladesh Supermarket Owners Association.
He said that his association had submitted a proposal in 2011 to the commerce ministry to formulate a policy for the sector so that business could be kept on run.
But the government is yet to respond to the issue, he added.
Sahin Khan, Chief Executive Officer (CEO) of Meena Bazar said, if the government does not take step to remove the barriers, many other supershops will be forced to close their businesses soon.
“As the supershops are ensuring a decent shopping practice in the country, the government should provide all sorts of support to the sector,” he added.
He noted that at present, supershop owners are facing problems in sourcing of goods directly.
Abdul Huq, a Manager of Prince Bazar said, if the government withdraws VAT or allows supershops to run after 8 pm, then the supershop owners could at least stay in the business.
“People usually come for shopping at their off-time, usually after office hours. If the government extends the closing time of the outlets at least by two hours, it will save many such supershops from closure,” he added.
Khandakar Serajuddin, proprietor of Almas Supershop, said they would be able to sustain the business subject to the government’s support to the sector.
“A supershop needs to use costly machinery, employ highly-paid staff, ensure safety and preserve all kinds of foods and relevant products in a hygienic way that naturally pushes up prices of the items. So considering the necessity of protecting consumers’ rights, the government should ease burden on the sector,” he said.
He also urged the government to reduce electricity tariff on supershops and withdraw operation time-limit of such business for the greater interest of the consumers as well as the sector. However, according to the insiders, many of their fellow businessmen are now offering lucrative discounts and different types of direct and indirect benefits to their customers to stay in business.
Presently around 109 superstores are in operation across the country employing more than 5,000 educated people.
