Neighborhood stores, discount chains and markets compete on prices

The country’s complicated economic situation has led the population to look for the cheapest prices, at various points of sale, to purchase products for the family basket and also for the personal use of the buyer.

EL DEBER requested a study from the specialized firm Zoomin Group, which during the second half of August conducted a price survey in neighborhood stores, 17 popular markets and the new format of discount stores (3B).

The study indicated that 25 products, including food for the family basket and personal hygiene items, that were chosen at random have prices ranging from Bs 4 to Bs 19. Meanwhile, in neighborhood stores, these same products have prices ranging from Bs 4.5 to Bs 22, and in popular markets there are prices ranging from Bs 4 to Bs 20.

For example, One of the products that shows the variation is the 900 ml bottled oil, which in neighborhood stores costs at least Bs 12.50 and in markets Bs 12, but in the new format it is found at Bs 11 (see infographic).

Another of the selected products was wheat flour in a 1 kilo package, whose cost in neighborhood stores is Bs 7 and in markets Bs 7.5, while in stores of the new format it is Bs 6.9.

Household items were also taken into account in the product list.As for the six-roll toilet paper package, the minimum price at all three points of sale is the same (Bs 11), but the maximum price in markets and neighborhood stores is Bs 13.

Juan Carlos Jara, researcher at Zoomin Group, There is a lot of dispersion in prices because they are adjusting due to the continuous increases that the market is facing, this due to the lack of foreign currency and the how difficult it is to get dollars to pay for imports and supplies.

He also said that today The cost of the products has not yet landed with their final prices and in another month there could be further increases in these prices.

“Businesses are afraid to raise prices because this would affect their sales, But they have no other option, because they are already buying at the new price. Why? Because the products have increased in value,” Jara explained.

Then, following a line, he continued that Due to the lack of foreign currency, inputs and finished products are imported at a higher price. and therefore, when the item reaches the market, the merchant receives it at a higher price, then he has to pass that price on to the final consumer.

For its part, the Economist Martin Montero pointed out that neighborhood stores are usually the most expensive due to several factorsOne of them is that they can take advantage of economies of scale and they also do not have strategic alliances with suppliers or centralized negotiation.

“Chains such as Tiendas 3B, on the other hand, have a good optimization of their sales spaces. In addition, they have a higher inventory turnover and more efficient logistics. Which of them is using 3B? I don’t know, but I suspect that the first two play an important role, that is, they have economies of scale and strategic alliances.

Negotiation with the industry is also a key point that allows the best prices to be transferred. to the final consumer, according to experts.

In turn, the Financial analyst Jaime Dunn pointed out that there are importers who have greater ease in accessing dollars abroad than others and that is impacting prices.

“Now, on the topic of international trade, Those who have this better access (to foreign currency) are those who are managing to obtain (products) at lower prices, But even though some have these low prices, compared to last year, it is most likely that they are higher anyway,” said the economist.

Finally, the economist Juan Fernando Subirana, After observing the shared study, it is noted that the price reduction in the new format of discount stores can be achieved through volume supply. “That is, by supplying themselves in larger volumes than the market traders These can deliver products at better prices to the end consumer.”

And the supermarkets?
With the aim of having a complete overview of prices across all sales channels. A team from EL DEBER toured three supermarket chains in the capital of Santa Cruz, during the second half of August, to find out the prices of the 25 products.

It is important to mention that lThe prices taken into account in supermarkets are averages between the maximum and minimum values ​​(see infographic).

When summing up the basket, it can be seen that in Hipermaxi adds Bs 288.9, while in Fidalga Bs 298.8 are needed and in IC Norte it would be Bs 299.20. The difference is minimal between the last two ‘super’ mentioned.

Bolivia accumulated an inflation rate of 4.61% until August, one percentage point higher than the target projected for this year by the Ministry of Economy and the Central Bank of Bolivia in the 2024 Fiscal Financial Program.

The Government expects end-of-period inflation to be around 3.6%, However, the National Institute of Statistics (INE) reported on Friday the data of the Consumer Price Index, which recorded inflation of 1.58% in August.

INE director Humberto Arandia said that climate change affected the production of several productsHe also highlighted speculation that arose over the “alleged shortage of certain goods,” which caused prices to rise.