KAMPALA – The latest Chinese grocery retail forecast issued by IGD Asia shows that the China Supermarket value could reach CNY15 billion ($2.36 billion) by the end of 2026. Currently, The Chinese grocery market is the world’s second-largest but it will overtake the US market (No. 1) in 2025, analysts said. “With GDP growth ahead of inflation, the economic growth in China is forecast to be, driven by real increase in output rather than rising prices. By nominal GDP, China has the largest economy in Asia. It is also the only major economy with positive GDP growth since 2020. The grocery growth forecast is to remain robust but lower than historical levels. The growth peak in 2018 and 2023 has been largely driven by the emergence of new retail and adoption of digital technology. Unlike typical Ugandan supermarkets and grocery stores, where shelves are dominated by locally manufactured products, in China town supermarket in Kampala shelves are dominated by chines manufactured products.The super store does not promote our economy. Buy Uganda and build Uganda is a good business measure to promote local industries and market as it saves us the cost of exporting law materials and the policy promotes value addition and local economy.Accordingly, the China town Supermarket head of marketing Mr. Daniel Akwanget said that, the tick Tokers made an overwhelming influence on their publicity without them knowing and thus this created un expected influx of shoppers hence closer. The claim was that the point-of-sale system went down but the actual point was that the uncontrolled and excited shoppers could have led to a stampede and hence lose of lives and property and we greatly applaud the supermarket management for taking safety of shoppers and employees as a first priority.According to some shopper’s, some items are not as cheap as portrayed by social media because the price difference for some products compared to those in local market is so minimal and it has an opportunity cost when you consider the time and Hussle shoppers go through.A lady shopper had this to say after the influx, this is not taking me back to China,” remarked a female shopper who had acquired a 40-litre plastic basin, adding “I had given up on Chinese things, but this is 5,000 Shillings cheaper than I would have bought it elsewhere.The China supermarket has presence in some African countries including South Africa, Zimbabwe, Mauritania, Ethiopia, Kenya and other African developing economies but still local supermarkets and groceries have thrived. The China town supermarket excitement should not be cause for business failure because Ugandans are always excited by many new developments and this is short-lived, Uganda is a happiest nation globally with 70% of the population termed as low-income earners and so any thing portrayed as cheap will cause excitement.People must know, Ugandan local suppliers are still nursing wounds as they supplied international supermarkets and took many months without being paid. The confidence and excitement they had in such supermarkets was short lived due to the closure of business by Uchumi, Game, ShopRite and Turkeys and It is estimated that Ugandan Suppliers lost over 25b UGX and some them have lost their property to banks due un paid loans and others are out of business. Still to note is that, such supermarkets. negotiate for 10-15 years of tax holidays with government which creates un necessary competition with local business community as they are able to subsidize their products. The worst part of it is that such foreign super markets promote consumption of imported goods while such goods are already available locally and still, they close business at the end of gained tax holidays. This has been repeated again and again at the expense of Ugandan tax payers.Therefore, Ugandan supermarkets should continue promoting buy Uganda and build Uganda as we strenthen our Economy and they must invest in social media to influence clients for updates on new products and the best deals. This is because, you find a typical Ugandan supermarket has not Instagram account, face book page, what’s app group and no record of regular shoppers as they only communicate to customers when they visit for shopping and this is considered rude mentally and outdated in this edge of technology. When I went to Nairobi in the past two months, I was personally excited when I visited Woolworth Kenya for shopping and the moment they input my name into their point-of-sale systems, they identified me as a customer and quickly they renewed my shopping credit card for good discounts, I was so happy as and I ended up. picnicking more items than planned. Ugandan supermarkets must pick a lesson as they compete and grow their businesses.Recommendations.Government of Uganda must stop using tax payers’ money to give foreign supermarkets tax holidays which are not sustainable. This promotes capital flight, burdening a few tax payers and expected closer of business when the tax holiday is done.Uganda suppliers are advised to supply China town supermarket with caution, give them short term credit and tight recovery measures. Do not get excited like shoppers as you may lose billions of monies on unpaid supplies.URA should consider giving tax incentives to supermarkets that promote buy Uganda and build Uganda by stocking and selling of locally manufactured products.Denis Tukahikaho Ph.D. General Secretary Allied Supermarket Owners LtdRelatedhttps://www.pmldaily.com/business/2024/09/allied-supermarket-owners-sg-the-chaina-super-store-is-not-a-solution-to-ugandas-poverty.html
