THE average consumer is unable to meet the rising cost of goods even as the country reports high economic growth.
This was the conclusion by local hypermarket boss Ameer Ali Mydin when analysing data on how hypermarkets throughout the country suffered low sales last year.
The slump in growth for hypermarkets, due to low sales, occurred as prices of more than 100 common foods shot up by 14% to 15% in the past five years, according to data from Mydin stores.
“I think people just don’t have money,” said Ameer, managing director of the well-known Mydin chain of stores in an interview with radio station BFM.
Prices for these items went up between 2.7% and 3.7%. Last year, prices went up by 2.3%, Ameer said.
“
“Ikan kembung hitam (Indian mackerel) 19%, Maggi brand Chilli Sauce 38.8%, Ayam brand sardines 30.6%.”
Ameer said the prices of these goods would also have gone up at competitors’ stores.
“If my prices go up, I’m sure my competitor’s prices would also go up. We are a market leader and we go up when our costs go up,” he said in the interview.
In the first quarter of 2017, overall retail sales declined by 1.2% but hypermarket sales went down by 4.8%.
The slump in the retail sector occurred while the country’s economic output of gross domestic product (GDP) grew by 5.6%.
In the third quarter, the retail sector shrunk by 1.1% while hypermarket growth declined by 5%.
“I am not denying that there is no (economic) growth because the numbers are there. But in a normal country, growth is domestic consumption.
“And the basic is food. But for hypermarkets and supermarkets, which control 50% of the market, (the growth is) negative.
However, Ameer said the ringgit’s improving exchange rate to the US dollar would hopefully bring prices down if the trend is sustained.
“The only silver lining is the ringgit has strengthened to the US dollar. Prices might come down in the long term.” – February 5, 2018.
Comments
Posted 6 years ago by Malaysian First · Reply
Posted 6 years ago by Brandy henderson · Reply
Posted 6 years ago by Nehru Sathiamoorthy · Reply
Posted 6 years ago by Malaysian First · Reply
Posted 6 years ago by Malaysian First · Reply
Posted 6 years ago by Bigjoe Lam · Reply
Posted 6 years ago by Fun fun · Reply
Posted 6 years ago by Joseph Ally · Reply