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Sabnani: Carrefour products more cost-effective and available in LGM

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Source: The Daily Herald 12 Sep 2015 06:22 AM

PHILIPSBURG--It is “unfortunate” that National Alliance Member of Parliament (MP) Christophe Emmanuel opted to compare a national brand like Frisian Flag with Super U milk, a private label, instead of with a comparable product such as private label Carrefour milk, said Le Grand Marché (LGM) Managing Director Anil Sabnani as he countered Emmanuel’s claims that LGM’s prices are higher than those of French-side-based Super U.

Sabnani told The Daily Herald on Friday that Emmanuel “did not make a correct comparison. He did not compare apples with apples, so to speak. Private labels are cheaper than national brands.”

Sabnani priced a six-pack of Carrefour milk at US $4.86 compared to the $6.05 Emmanuel had paid for the Super U brand milk.

Emmanuel also bought yoghurt from Super U on his price comparison mission on Thursday. He paid $3.34 for an eight-pack. An eight-pack of Carrefour yoghurt in LGM is “only $1.84.”
“Our prices in private label are already comparative or even cheaper in some cases,” Sabnani said. “Carrefour is the number one brand in private label.”

He said he wanted Emmanuel to understand that LGM is a strong proponent of supporting local businesses. “We support local distributors. We buy from them. If we move over completely to private labels, those distributors will suffer. Some 600 jobs will be on the line,” Sabnani said. “We want to help keep the economy healthy and progressing. We are one of the biggest taxpayers in St. Maarten.”

Emmanuel also did not take into consideration in his price comparison the cumulative effect the application of the five per cent turnover tax (ToT) has on the price of goods and services, said Sabnani.

“What about the cost of utilities now? On the Dutch side, it is three times more than the French side. So where does the price gouging really come from?” Sabnani said. “All of these things affect our prices.”

He said he would invite Emmanuel to visit LGM “to come see our prices for Carrefour products for a proper comparison, because right now he is comparing a Hyundai with a Rolls Royce.”

Emmanuel “never made any attempt to meet with me about his concerns. If he did, I would have addressed them and shown him our Carrefour products,” said Sabnani.

LGM stocks its shelves to cater to the island’s resident population as well as its visitors who are mainly from North America. “Most visitors from the US don’t know the European brands or can’t read the French labels. We carry both national brands and private label Carrefour,” Sabnani said.

In the end, the shopper is the one with the choice. “We present the customer with a choice: they can choose a private label and save or stick with a national brand. It is their choice. Super U only carries private labels; we have a mix,” Sabnani said.

He said that based on Carrefour’s regulations he was only limitedly able to promote the availability of its products in LGM until the $2 million transition of LGM Cole Bay into a Carrefour Market took place in mid-November. Once the transition takes place, the Carrefour Market will stock some 32,000 products spanning from food and beverages to health and hygiene.

French company Carrefour is the world’s second biggest retailer following United States based Walmart. “It took a significant investment to bring Carrefour to St. Maarten and without the help of Government,” Sabnani said.

He said LGM “foresaw” the change of the market with the sliding euro-to-dollar exchange a year ago and started to work to bring less-pricey European brands. That led to the securing of the Carrefour franchise for St. Maarten.


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