HCM Metropolis retail companies are working onerous with suppliers and distributors to restrict will increase within the costs of foodstuffs and client items.
Tran Lam Hong, deputy common director of the Saigon Union of Commerce Cooperatives (Saigon Co.op), mentioned since earlier than the Lunar New 12 months – on the finish of January – some suppliers of client merchandise and foodstuffs had been looking for a rise in costs, however Saigon Co.op grocery store chains negotiated and located methods to maintain costs unchanged.
Nonetheless, with petrol costs growing to their highest ever ranges, resulting in a pointy improve in manufacturing and transportation prices, producers and distributors would undergo heavy losses with out growing costs, he mentioned.
A spokesperson for The Saigon Buying and selling Group (SATRA) mentioned his firm was negotiating with suppliers to maintain costs regular, however they might fluctuate barely, with vegetable and fruit costs growing by 3-5 per cent.
Retailers are anxious since demand has fallen sharply as a consequence of COVID-19 as individuals tighten spending, and any hike in costs would trigger gross sales to plummet additional.
SATRA mentioned because the Lunar New 12 months gross sales had fallen by 5-7 per cent year-on-year.
Within the face of unfavourable market situations, Satra needs producers to work collectively to maintain costs regular.
Nguyen Dang Phu, deputy common director of Vissan Co Ltd, mentioned to maintain costs regular his firm had stocked up on uncooked supplies wanted for the subsequent three to 5 months and was negotiating with uncooked supplies and packaging suppliers to maintain costs unchanged for an additional two or three months although they need 5-7 per cent hikes.
Processed meals can wrestle to keep up costs, however for recent meals similar to pork and seafood, it’s troublesome to proceed to maintain costs after gasoline costs have climbed to document ranges and are anticipated to extend additional.
Nguyen Trong Tri, deputy gross sales director of the CP Livestock Joint Inventory Firm, mentioned the pork consumption in HCM Metropolis had decreased by 30-40 per cent since many colleges had been nonetheless not open because of the epidemic.