Consumers: outlets benefit from “currency” variables in offering offers

Sales outlets: “Long contracts” prevent a decline in commodity prices in the local market

The availability of stocks of food commodities makes it difficult to change the cost of supplying them according to exchange rate changes.

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Officials of “cooperatives” and sales outlets confirmed that the policies for supplying commodities depend on long-term contracts, which prevents the decline in exchange rates of some currencies from reflecting on the cost of commodities in the markets.

They explained to «Emirates Today» that the sales outlets rely on contracts in dollars from most countries, which makes the cost stable for supply operations.

And «Emirates Today» monitored the decline in the prices of nine foreign currencies against the dirham since the beginning of last year, topped by the Sri Lankan rupee by 82%, and the Egyptian pound by nearly 57%, in addition to other currencies in varying proportions that included the Pakistani rupee, the Indian rupee, the euro, the Japanese yen, and the pound. sterling, the Philippine peso, and the Bengali taka.

Consumer reviews

And consumers indicated that the prices of food commodities did not decline, despite the decline in the currencies of importing them from the countries of origin in large proportions during the recent periods.

Consumer Ismail Hassan said that the decline in the exchange rates of many foreign currencies against the dirham did not affect the prices of food commodities imported from those countries.

He added that sales outlets benefit from exchange rate changes in offering promotional offers, rather than lowering commodity prices.

For his part, the consumer, Samer Abdel-Ghani, said that sales outlets are quick to increase commodity prices when there are any increases in shipping and supply costs in the countries of origin, at a time when they are slow to reduce prices when any supply fees decline, stressing that the consumer has the right to benefit from the decrease. Prices, as well as the cost of price increases related to the supply.

As for the consumer, Hadi Mahmoud, he demanded a reduction in the prices of European and Asian commodities whose exchange rates are declining, pointing out that the expansion of promotional offers is not sufficient to be adopted as an alternative to a direct price reduction.

In addition, the Director of the Marketing Department at the Union Coop, Dr. Suhail Al Bastaki, said that the policies of long contracts and dollar agreements for supply are among the main reasons why the effects of low foreign exchange rates against the dirham do not appear on the goods imported from those countries.

He added that the long-term agreements for the prices of supplying goods are among the policies adopted by sales outlets in the contracting operations to import various goods, whether through internal or external supply companies, in order to protect against fluctuations in exchange rates or emergency costs.

stock availability

For his part, Abdul Hameed Al Khashabi, the official spokesman for the “Aswaaq” group centers affiliated with the Dubai Government Investment Corporation, said that supply policies depend on long-term contracts, which prevents the decline in the prices of some currencies from reflecting on the cost of goods in the markets, pointing to The sales outlets adopt contracts in dollars from most countries, which makes the cost stable for supply operations.

He explained that the cost of supply depends on the factors of freight charges and sales from the countries of origin, which makes sales outlets hedge in contracts to prevent sudden changes.

He also pointed out that the availability of large stocks of food commodities in the warehouses of supply companies may make it difficult to change the cost of supplying them, according to the changes in exchange rates against the dirham.

Fresh goods

In the same context, the Director of Community Relations and Public Relations at the Sharjah Cooperative, Faisal Khaled Al Naboodah, said, "The decline in foreign exchange rates has effects on the cost of supplying food commodities, but it appears more clearly on fresh commodities whose prices change periodically, according to The variables of the cost of supply and shipping, compared to other food commodities.

Preference for promotions

Ibrahim Al-Bahr, an expert in retail affairs and head of the “Al-Bahr Consulting Company,” said that long or dollar contracts, price fluctuations, as well as large stocks in warehouses, are factors that affect for periods, in the non-reduction of prices, according to the changes in currency exchange rates, but they do not continue. long.

He added that some sales outlets prefer to expand promotional offers rather than directly lowering prices, due to considerations related to the difficulty of returning to raising prices after the exchange rates change, in addition to the fact that offers are more effective in attracting consumers, increasing sales, and raising competitiveness.

He continued: «Import from European markets is often done in euros and not in dollars, and with the continued decline in prices for long periods, it is expected that the effects of this will appear on the prices of food commodities that are imported in the European currency after the expiration of the previously available stock, and upon new annual contracts during the coming periods. ».

• Ports adopt contracts in dollars from most countries.

• The decline in exchange rates appears more clearly on fresh commodities.

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