The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Super Value's president yesterday said its March VAT return was the "highest ever" after COVID-19 shoppers drove a 36 percent increase in store sales and even greater warehouse output.

Rupert Roberts told Tribune Business that the 13-store supermarket chain had "$1m less in the warehouse than we did a year ago" at month's end after consumer demand caused a 70 percent jump in that facility's output.

To cope with this outflow Super Value has to "increase the intensity of its buying", he explained, but this requires the speedy processing of entries by Bahamas Customs and the co-operation of the Price Control Department.

Mr Roberts revealed he had asked the Prime Minister's Office to remove price controls on a range of "new brands" Super Value is sourcing as it expands its supply chain reach throughout the world. While no formal government response has been received, he said the removal of such controls was necessary if these products are to sell given that they are unfamiliar to Bahamian consumers.

And the Super Value chief also voiced optimism that the government's long-standing "wishy washy" approach to Bahamian manufacturers may now be a thing of the past, with the economic fall-out from the COVID-19 pandemic bringing home the value of a domestic production base.

Expressing hope that "somebody wakes up now", Mr Roberts suggested that this nation could take the ten percent sales benchmark for local produce during 'Buy Bahamian' month and "up that by 25-30 percent overnight if we get serious".

Besides COVID-19 stocking up, he added that Super Value's sales were also likely benefiting from hotel and restaurant closures as these were forcing Bahamians and residents to cook at home rather than eating out or consuming take-aways.

"Our sales last month were up 36 percent, but our warehouse output was 70 percent more than last year," Mr Roberts told Tribune Business. "Movement of product through the warehouse went up because we were really importing. Now we realise we have to get serious. We didn't realise we were selling as fast as we were buying. We have to buy, buy, buy.

"If we had a 36 percent increase in sales, that will be our biggest VAT return ever in history. With a 36 percent increase in sales and 70 percent increase in warehouse output, that left us with $1m less in the warehouse than a year ago.

"As fast as we can import, consumers are buying. We just have to increase the intensity of our buying. The problem is we can't have it coming faster than they put it through Customs and put in the entries."

Mr Roberts said Super Value had taken on 10 extra warehouse staff to meet the COVID-18 demand as it expands its product sourcing beyond traditional chains to provide extra food security protection.

"We're hunting in the US, were hunting in Canada and we're hunting worldwide," he added. "We tried to get Price Control to approve these new items in order for us to buy them and bring them in. We've had some stuff that's gone out of date before it was approved. Price Control said we couldn't get the Government's attention to change it.

"We're buying anything and everything we can, but if they're going to hold price controls on those items that may be where the supply chain breaks. We can get the items, but I'm not prepared to have those sitting in a warehouse until they put them on price control six months later. We need those alternative brands to not be under price control to bring them in."

Mr Roberts said these brands, which he did not name, needed to be priced below the international brands Bahamian consumers are familiar with to ensure they sell. The only way to achieve that, he added, was to relax price control restrictions.

"We made a request to the Prime Minister's Office to suspend price control on the new items until this crisis is over," he disclosed, adding that officials had told him to wait for a Cabinet decision on the matter. "

"I said this is like the stock market," he added. "Those 10 containers of rice will be gone and not be available any more...... It's going to be difficult, if not impossible, unless they relax the Price Control Act and let the new items come in. They're not going to sell. The public will not accept them over the international brands. When we price them they have to be below the recognised brands or they will not sell."

Mr Roberts said manufacturing ventures he is involved with have suffered in the past from government decisions to lower tariffs on imports, most notably his bathroom tissue producer. "I just let the plant relax and it's producing 600 to 700 cases per week," he added. "When they took off our preferred duty, the only reason didn't close it was the 20 employees."

The Super Value chief contrasted the Government's policies and attitude towards local manufacturing with those of Jamaica, whose government was "really behind" its producers. "I've never know a government to support local manufacturing," he said, which expressing hope that COVID-19 has caused a new day to dawn.

Praising the Prime Minister for having "the right idea" in protecting local non-medical mask producers, Mr Roberts told Tribune Business: "Do I think the Government is changing their wishy washy attitude to local producers and getting serious? Yes. I think they'll stop playing politics with it.

"I think we can get back into pork, producing chicken, producing eggs. We'll do farming. I was talking to Lucayan Tropical. Just one item, tomatoes, we probably purchases 3,000 cases from them. I've been urging them to expand. They produce a really good product and can ramp up in six months, and you'd be surprised at what they can do to support the country.

"When we have 'Buy Bahamian' week or 'Buy Bahamian' month, at least 10 percent of our sales that month are Bahamian produce. We could take that up to 25-30 percent overnight if we get serious. I hope somebody wakes up now."