By ANNELIA NIXON
Tribune Business Reporter
anixon@tribunemedia.net
An independent liquor merchant yesterday complained it is facing “unfair competition” and “predatory behaviour” as a result of having to battle with the retail chains owned by its very suppliers.
George Robinson Jnr, owner of Base Road Wholesale Bar which is about to celebrate its 50th anniversary, is hoping to increase his sales this Christmas season but faces the added challenge of having to compete with rival merchants owned by his liquor wholesale/distribution suppliers.
Pointing to 700 Wines & Spirits, the retail chain that is part of vertically-integrated, BISX-listed brewer Commonwealth Brewery, he argued: “The distributors are having a lot of sales (discounts) and the consumer is taking advantage of it.
“And it’s a problem we having with them because the same price they’re selling it to us for, the consumer can walk into their retail stores and get the same [wholesale] price. They just had a big sale the other day. Like I told them, I didn’t make no money that week because everything they sold was at trade price, and that’s the price we pay [wholesalers]. And I told them that it is unfair competition.
“They are the distributor and they are the retailers, and in their retail, we have to compete with them as a distributor and we can’t do it if we want to make a decent profit. And it happens at 700 and Jimmy’s Wines and Spirit (Bahamian Brewery and Beverage Company’s retail affiliate), same thing,” Mr Robinson Jnr continued.
“But Commonwealth Brewery, only them makes Kalik… the Radlers, and so we have to compete with them when they have their sale. And I have sent people to their stores during the sales and sometimes it’s cheaper than what they sell it to us for.
“So I let people go and do walk-ins, and then they bring me the receipt. And I draw it to their attention. But then they would try to compensate us and say: ‘Well, okay, we will give you a discount.’ I say: ‘But when you give me the discount I still can’t sell it because the people still could buy it cheaper.’
“So right now, sales are a little slow because they just had a big sale the other day. I think they had it during what they call Black Friday. They just had a big sale on people who are serving like parties and everything. They took advantage of it. They stock up because liquor don’t spoil. So I said: ‘Now you want to come and give me a discount but who am I going to sell it to?’”
Mr Robinson said although his bar will not have a full-blown Christmas sale, he is doing “little things” to provide discounts to customers. “Right now I’m running a little special on what we call a bundle. It’s a $200 bundle. You spend $200 and we put together 10-bottle seal at a discount price and we call that a sale,” he added.
Mr Robinson is also holding his annual New Year’s celebration, which involves giving back to the community by providing 500 meals. Given that the company would have been in business for 50 years, he is also running a raffle for those who spend $50 or more, giving them the opportunity to win a Suzuki Swift, $1,000 in cash or a 50-inch TV.
Eddie Gardner, owner of Toast Wines & Spirits located on Paradise Island, said he experienced a slow September but is seeing an uptick in sales and is optimistic that December will be a better month.
Suggesting the US elections might have been a major factor as to why business slowed, reducing tourist numbers, he said is looking forward to extending his free delivery services for not only Paradise Island but to some eastern areas as well, including Eastern Road and Yamacraw, as early as next week.
Comments
DonAnthony 1 hour, 6 minutes ago
What a sense of entitlement these retailers have. God forbid the customer gets a lower price, Mr. Robinson. Commonwealth Brewery has every right to reduce its prices and maximize sales and shareholder value, so what if you have lower sales for a week or two out of the year.
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