Supermarkets reaching out to the consumer

Today, the supermarket industry with approximately 300 outlets islandwide touches the lives of almost 10 percent of all Sri Lankan households. As a part of the total retail trade, the supermarkets contributes to around 12 percent in Sri Lanka

Cargills (Ceylon) Ltd, owners of supermarket chain Food City, in a bid to understand the expectations of the Consumer Affairs Authority (CAA) and the consumer, recently organised the first ever open forum discussion with the CAA and the consumer.

Relevant government bodies and consumer associations and representatives of key supermarket players including Keells Super, Arpico, Laugfs, King’s and Food City got together to strategise on how these authorities and the players in the modern trade can work together to meet the aspirations of the consumers, traders and manufacturers.

“Today, the supermarket industry with approximately 300 outlets islandwide touches the lives of almost 10 percent of all Sri Lankan households. As a part of the total retail trade, the supermarkets contributes to around 12 percent in Sri Lanka, as compared to three percent in India, one percent in Bangladesh, 18 percent in Vietnam and 30 percent in Indonesia,” Ranjit Page, Managing Director Cargills Ceylon said.

He said that as proven by the contribution of this industry in more developed countries in South East Asia, this is an industry that will grow with changing consumer trends for more convenience and better standards in food retailing.

The sign of growth of this industry is a sign of economic development in a country, since this requires increasing consumer spending power.

He said that the supermarket industry makes a unique contribution to the national development and economy by creating many opportunities for employment, especially among the rural youth. “More than 100,000 Sri Lankan citizens in 16 districts and six provinces are supported by this industry by means of direct employment and development of cottage industries in the supply of curd, treacle,” he said, adding that the growing supermarket industry has provided relief to the burning problem of the Sri Lankan farmers in finding an assured market for their produce at a reasonable price, while ensuring that money is not drained out of the country.

He explained that by implementing proper techniques of transportation and storage, wastage is minimised and the savings by this and the benefit of direct purchase of produce avoiding middle men is passed to the consumer, thus bringing down the cost of living.

“The development of supermarkets enhances the landscape of urban and rural towns as well as develops this township,” he said, adding that the Sri Lankan modern trade industry has been showing a steady growth over the last 5-6 years.

Sarath Wijesinghe, Chairman CAA said that the authority is ‘not as powerful’ contrary to popular belief.

“We are running on a minefield,” he said adding that the CAA is looking forward to such future forums.