Consumers confirmed the existence of large price differences between the same vegetable varieties, in major commercial outlets and some cooperative societies on the one hand, and supermarkets on the other.
A field tour of the UAE Today at the supermarkets in Dubai, Sharjah and Ajman showed a 75% drop in the prices of some vegetables in some varieties compared to those in major outlets and cooperatives. With retail and vegetable trade, prices are different to marketing policies, supermarkets are geared to increase sales and attract consumers, and large malls add profit margins that vary according to their business policies and operating costs.
Field trip
In detail, a field tour of Emirates Today in the markets of Dubai, Sharjah and Ajman showed price differences in the varieties of vegetables displayed in major outlets and cooperatives, as well as in supermarkets.
Major outlets and "cooperatives" registered a price increase, reaching 75% in some items.
Consumers Mohammed Hassan said that the prices of vegetables in the supermarket outlets are lower and in large proportions, compared to the major outlets and some cooperative societies, pointing out that this prompted him to adopt the shops of the «supermarket» to buy.
The major shopping centers and some cooperative societies exaggerated their profit margin in terms of vegetable prices.
Consumers Saif Yassin said that the prices of vegetables and fruits in shopping malls and cooperatives should be much lower than those in small shops, given the large capacity of these outlets, as well as lower import prices.
He continued: «I found that the opposite is true, small outlets enjoy lower prices, especially in the varieties of vegetables, and up to 80% in some of them».
Consumers Yousef Hassan said that he decided to take advantage of the low prices of some vegetable varieties in the supermarkets, noting that there are large price differences compared to those in commercial centers and associations offering these items at high prices, after adding large profit margins borne by consumers.
Marketing Policy
Sami Mohammed Shaaban, general manager of Ajman Cooperative Markets Association, said prices may vary between vegetable outlets on a regular basis, depending on the supply, sources or marketing policies of each outlet, stressing that some supermarkets may focus more on reducing Varieties of vegetables, as a kind of marketing policies, attract consumers, raise sales.
In the same context, said the former sales manager in a shopping center, Dibal Schroon, that the supermarkets are adopting different marketing policies to attract larger segments of consumers, whether by offering vegetables varieties at discounted prices, compared to those in major supermarkets (hypermarket), Or food commodities obtained through deals from supply companies at discounted prices, stressing that price competition is positive and provides several alternatives to meet the needs of the consumer.
Operating cost
In the same context, the head of the company «Farzana» business for the supply of vegetables and fruits, Mohammed Sharif, said that the sources of supply to commercial centers, cooperative societies and supermarkets may be uniform, but the price differences due to the policies to determine the margins in each of them for vegetables, pointing out that the centers The company adds profit margins that vary according to its operating policies and operating costs.
Sharif Wahid, director of the “Acid and Sweet” trading company for the supply of food and vegetables, agreed that the sources of supply are the same for all outlets in the markets, but the commercial centers and cooperatives have an advantage in obtaining better prices in the supply, because they rely on contracts in larger quantities, which makes Most of them receive weekly price fixing privileges and are guaranteed to offer without fluctuations during the week.
He attributed the price differences between the varieties of vegetables to the fact that the supermarket chains exploit their low operating cost, compared to the major outlets and cooperatives, offering vegetables at discounted prices, thus increasing sales in more proportions and attracting more consumers.
Bastaki: Marketing policy
Dr. Suhail Al Bastaki, Director of Marketing and Happiness Department at the Union Cooperative, attributed the presence of vegetable varieties in supermarkets at prices lower than those in major outlets, to the departments of some supermarkets to reduce the prices of these items, excessively , In the context of attracting more consumers, and compensating those price differences through other consumer goods or food, as a marketing policy.
Increase sales by reducing profits
Most of the supermarkets operate with profit margin distribution policies according to the most demanding commodities, such as vegetables, thus reducing their profits by offering them at reduced prices, thus increasing their sales and sales outlets in general, said Mohamed Shams El-Din, a supermarket sales officer.
For his part, the supermarket sales officer, Deep Vijay, said that the supermarkets market their discounts on vegetables and fruits through advertising publications, as part of marketing policies to attract dealers, stressing that these shops reduce profits on vegetables that consumers need daily.