The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Bahamian retailers yesterday said they are employing bulk buying and various other strategies to mitigate rising inflation and goods prices.

Tanya Heastie, general manager of ShopSmart, told Tribune Business that the soaring cost of imported inventories has caused her to adjust operations. She has decided to buy in-bulk to take advantage of current prices before they increase further, while also hoping that the higher order volume will result in suppliers offering discounts.

“Some of the things we’re doing are we try to buy local, where possible,” she said. “We also try to buy in-bulk and lock-in prices so we are able to keep items at a cost. Because it’s continuing to rise, if we can bring in an array of items at a certain price then we can pass on those prices until we run out of that stock.

“Most people are already forecasting how much they are increasing their prices by, but us at Shop Smart, where we say we make you a smart shopper, instead we’re trying to keep our prices steady and not increase them.”

Ms Heastie added: “The rise in inflation, and not just in the United States but all around the world, has impacted most local businesses. We can start with the increase in freight, for instance. What we would have paid $5,000 for in freight is now $35,000 with the product coming from the same place.

“But that’s just how high inflation is, and it continues to grow. So even though VAT (Value Added Tax) may have decreased, the increase in prices all around the globe limits or removes all of the savings, in some instances, that local businesses would have been able to pass on to consumers here in The Bahamas.”

Leo Carey, general manager of Y Care’s Fashion, said there is little Bahamian businesses can do to offset the increase in imported prices. He added: “I just came off of a website trying to buy a truck from Japan, and the price of the truck is so high. To bring it in would cost me an additional $20,000, just for it to leave Japan. From when I bought the other one in 2010, it was only $12,000.”

Mr Carey said last year’s soft economy has worked to buttress some of the inflationary impact for his business as he still has inventory in stock from 2021.

He added: “Sales were down and inventory was up last year, so basically we have most of the stuff that we needed. But we did have some shoes that came in in December and they went up by 30 percent on the wholesale price. In addition, the Betty K went up by 20 percent on the freight. All of this impacts the retail stores.

“Buying in bulk does not help at a time like this, because you don’t know how the market will be in the next month or two. We just don’t know, and if you buy in bulk that means you have inventory sitting around in the stores for months and you can’t get rid of it. I think the best strategy is to just buy and sell as you go, because this thing may end and the prices may plummet.”

Sandra Burrows, general manger of the Island Store, said: “We cater more to the upscale residents and inflation isn’t a big concern for them. But for local businesses, I have been paying out of my nose for the past several years, so we just have to ride the wave.

“People can beat up their gums all they want, but if they want it, they will pay for it or they will just have to do without. That’s that in a nutshell.”

With regard to the possible strategy of buying in-bulk, Ms Burrows said: “The thing about us being a high-end boutique is you don’t want to flood the market with anything because our customers want to think of the item as unique. You don’t want to go in everyone’s house and see the same thing. That’s something we have to be mindful of.”