10% Grocery Discount Ending On February 25th
The 10% Wednesdays discounts at the island’s major grocery stores will end on February 25th, Minister of Home Affairs Michael Fahy said today [Feb 18] in the Senate.
Minister Fahy said, “Senate Colleagues will be aware of the 10% discount initiative by the larger grocery stores which commenced on December 4th 2013 for a period of one year. As a reminder, the three supermarket chains that took part were Lindo’s, Supermart and Marketplace.
“The primary objective of the 10% discount initiative was to provide those in need a food price deduction to assist them through their time of financial need.
“The success of the initiative far exceeded the projected usage anticipated by the participating grocers who have experienced higher revenue loss over that which was projected.
“The participating grocers had indicated in June of last year that the initiative could not be sustained after November 30th, 2014,” added the Minister.
“Notwithstanding that, and upon discussion with the Ministry, the grocers agreed to continue the initiative through the Christmas period and into the New Year to further assist families.
“This commitment was reflected in the November Throne Speech, where we said that the initiative would continue until 15th February 2015.
“Since November 2014, we have continued discussions with the grocers, who agreed to extend the initiative until 25th February 2015; as such the last day of the 10% discount scheme will be one week today.
“Thereafter, the grocers will revert to the original 5% discount that prior to 4th December 2013 was offered by the participating stores. You will note that the grocers are reminding consumers of this fact.”
The Minister’s full statement follows below:
Madam President, Senate Colleagues will be aware of the 10% discount initiative by the larger grocery stores which commenced on December 4th 2013 for a period of one year. As a reminder, the three supermarket chains that took part were Lindo’s, Supermart and Marketplace.
Madam President, the primary objective of the 10% discount initiative was to provide those in need a food price deduction to assist them through their time of financial need. The success of the initiative far exceeded the projected usage anticipated by the participating grocers who have experienced higher revenue loss over that which was projected.
As I have already advised Senate colleagues in a previous Ministerial statement, Saturdays was the grocer’s busiest day with a steady flow of customers throughout the week; however since the introduction of 10% Wednesdays the weekly flow of customers diminished considerably which contributed to the grocers’ bottom line losses.
The Ministry, through the Department of Consumer Affairs, monitored food prices throughout the discount period to allay cynical concerns expressed by some that the participating grocers would simply raise prices to reduce the effect on their bottom line.
As I reported at least twice to the Senate, the Department of Consumer Affairs demonstrated that the naysayers were wrong and that the grocers did not undertake such practices.
Madam President, the participating grocers had indicated in June of last year that the initiative could not be sustained after November 30th, 2014. Notwithstanding that, and upon discussion with the Ministry, the grocers agreed to continue the initiative through the Christmas period and into the New Year to further assist families. This commitment was reflected in the November Throne Speech, where we said that the initiative would continue until 15th February 2015.
Madam President, since November 2014, we have continued discussions with the grocers, who agreed to extend the initiative until 25th February 2015; as such the last day of the 10% discount scheme will be one week today. Thereafter, the grocers will revert to the original 5% discount that prior to 4th December 2013 was offered by the participating stores. You will note that the grocers are reminding consumers of this fact.
I would like to take this opportunity to thank publicly the participating grocers for engaging in the spirit of shared sacrifice – namely Lindo’s, Supermart and the Marketplace. The Government greatly appreciates your agreement to assist the Bermudian public. I would also like to take this opportunity to encourage the public to thank the participating stores for their willingness to assist.
Thank you Madam President.
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i’d like every supermarket to swear that they didn’t inflate prices by 10% to compensate for the 10% discount…#goodPRexercise
Is the “Alcohol Licences” on Sundays also Ending? Are the “Tax Concessions” to Groceries stores also ending?….really …..really lets get this right and ensure savings all around are fair !!!
Looks like the Stores still stand to benefit anyways…
Consumer affairs looked into allegations after it was started and their conclusion was there wasn’t.
And who did they tell this, just you?
They issued a press release at the time. Here is a copy of the report on the BPSU website: http://www.bpsu.bm/wp-content/uploads/2014/02/Consumer-Affairs-Grocery-Suvey-2014.pdf
Thank you, Don Burgess
You are welcome.
It was on the news.
That’s not true. I check prices regularly and they have increased…even soap powder!
That’s BULL!
No they don’t. It’s a fact that there are greater discounts given to individual items during other days of the week.
I can only imagine how the know it all cynics will try to spin this one. MarketPlace, Lindos, and Supermarket decision makers I thank you for not only the year of the 10%, but also the extension until February. Government of the day, thanks for listening to the people and making the request to the island Supermarkets on our behalf. It was supposed to be a year, you gave us more. Thank you!
I wasn’t completely satisfied with the Dept of Consumer Affairs telling me the stores had not increased their prices so I asked RB, a personal friend of mine, (you know who you are) who does product pricing for MarketPlace, I asked if the Marketplace had increased their prices because of the ten percent weekly discount, thanks for your explanation about pricing period. For those interested, she said there had never been an increase due to the additional 10%, so cynics I hear your misinformation but I’ll go with the one that holds the pricing tag gun on a daily basis. It’s amazing how we can hear and spread a lie so quickly without first going to a source for the truth. Then again some people want things to complain about so why not make up and spread untruths. Facts happen to be a lot easier to explain than opinions as well!
Bernews you are on it as usual! Well done all!
Who would admit that really?!
In any case I agree to be thankful; however I can say from one who notes prices on what I buy and can assure you that they did. Various items were done sporadically & I am sure will continue. Every couple days if you watch closely the cost changes for convenience. And it’s been happening for years.
So do you think the prices went up because they wanted to recoup the 10% or do you think the prices went up because of other cost factors, such as shipping, fuel, labour…? Reality people…reality…this is happening all over the world. Goods and services simply are more expensive today than they were yesterday.
Main payback was legal sunday alcohol sales, ask RB to show you the numbers.
Strange that Lindos took part then considering they aren’t open on Sundays.
So what incentives did the gas stations and stand alone liquor stores receive for Sunday alcohol?
thank you for your vote of confidence…who should I believe your friend or a Market Place manager?
prices just went up recently; eg a box of cereal which was $5.37 last week, is now $6.68!
Yes and if you travel you will see the prices of food overseas has increased. That trickles down to us.
What box of cereal what store? If you list this maybe we can get explanation of why the product went up 24%.
a1 paget
post blueberry mornings
Herrs Chips, 6 months ago was 1.89 now 2.29 and rarely on special… go figure. I was suffering with 10% I guess the difficulty will only continue. Already couldnt do fruit now will have to cut out cheese and deli meat to compensate.
Smh
C’est le Vie
Herrs Chips are not a necessity. in fact they drive up the costs of health care. Why should the stores subsidise your desire for a luxury
Wasn’t the objection from some quarters that the 10% that was applied across the board, was misplaced, because it covered not just primary foodstuffs like rice, but items that could be considered vanity or luxury items?
The suggestion that discounts be applied to only select food items was shouted down here and on other sites.
Sorry should we start talking about the price of butter, eggs, milk and bread because BOY we could be hear all day. The staples have become the luxury items….
I don’t think you are suffering without chips. If you can’t afford a 30 cent increase, you should probably stick to the necessites.
Also, it’s called inflation, and it’s not unique to Bermuda or a 10% discount.
See above…
Thank you to the participating stores . It was nice while it lasted and I certainly tried to do all of my shopping on Wednesdays even before it was instituted .
Now back to the paltry %5
However , anyone who thinks that suddenly there is no need for this in terms of people’s financial situations is sorely mistaken. The need is still very much there.
The bumpy ride is far from over and it even looks to get worse for the next few years.
I’d really like to see the programme maintained AND a whole lot of other service providers get on board.
There are now more people than ever with much less in their pockets than ever before and the merchants , and dare I say , the banks and landlords are going to have to get very creative in their ways of getting it out of the pockets of the aforementioned .
Everything and everyone’s expectations are going to have to go down by a long way just to keep the cash flowing.
A half a loaf is better than none .
Very much needed..
watch out after the big budgy gets aired…as i watch the endgame unfold in front of me…along with the agenda21 being installed…i see myself becoming a statistic in the not too distant future…the water has been up to my nose for quite sometime despite being employed…not “gainfully” employed ,just employed, so i know how many must feel the same…stay tuned , more to come.
ps. and its not about me living beyond my means…jus a few beans away from joining the boys on front street…um juz zayin.
In an observation as this initiative is now coming to an end and I want to thank the participating chains in an effort to assist all on thr island.
The question I would like to know is how much did the chains themselves feel of the 10% – 8% savings to the customer on there balance sheet for that year period? Also, I would like to know what have those same chains done to further lower the rising costs of food into the island in partnership with the government and the shippers, suppliers and other stakeholders?
Lastly, now that the additional discount will be removed what effect will that have on the greater public as the budget gets rolled out?
Firstly I like to say hello to everyone.
I usually don’t post comments because people are very rude when a person is only sharing their opinion or view.
This is my opinion:
As a person who rarely grocery shops because I can not afford to. Even after offering a day to save 10% . When I do go into these stores I often curse the grocery gods!! It is very expensive simply put!
But with that being said how bout we do in typical bermuda fashion and point the finger at the suppliers. The article did list Lindos, Marketplace and Super mart. Whom all together receive product from Butterfield and Vallis, Dunkleys Daries and BGA to name a few…
But if we go there we’d have to go to the shippers. …which would take us to the docks…. and in typical bermuda fashion we’d be talking about something else while the frigging groceries are still EXPENSIVE and people are not eating. Families are not eating!
Yes the grocery store is rammed with all yall that have 5 loaves of bread while telling me that half a loave is better than none!
I wonder what Micheal thinks as he opens his Viking stainless steel refrigerator! ! Or rest of you for that matter.
Ohh right you don’t think, cause you eating!
Man cannot live on bread alone.
Even if it is half a loaf.
Michael probably thinks that he’s glad he worked hard to provide for his family.
It is spelled I-n-f-l-a-t-I-o-n people.
And the more expensive food is a direct disadvantage of having to import each and everything to sustain our lifestyle.
Think of all the expenses that are incurred by the grocer when the buy their stock. Think about transportation costs (i.e. airlines etc.), foreign currency purchase taxes (which have increased from 0.15% to 1% between 1998 and 2010), staffing, general overheads, payroll taxes, pension contributions, social insurance payments etc.
If you can do better then by all means set up a grocery store and sell your products at dirt cheap prices, pay your staff the average Bermudian wage as well as all the other high costs of doing business here, while at the same time ensuring that you make enough of a profit to ensure you can reinvest into your business to ensure you remain relevant.
If it is as easy as you guys say it is and that the price increases are just to enrich the store owners then you should have no problem opening up such a store and proving your conspiracy theories right.
If you do I will be the first in line. But if you do, I imagine your store wouldn’t last a year in Bermuda and I won’t be shopping there for very long.
It is what it is for a place that manufactures absolutely nothing on our own.
didn’t milk go up too?
Again it is spelled I-n-f-l-a-t-I-o-n
3 things:
1. They are businesses. There to make a profit. They don’t owe anyone (non-owners) squat!
2. They are making money hand over fist.
3. It was nice of them. It didn’t hurt them TOO much (i.e. they’re still well profitable). They don’t owe anyone an explanation.
If I could only open a Rum Shop tomorrow.
You follow right?
Nah!!!!!
Thyme 2 plent some carrots…..
Those critics and complainers looking to blame someone…PRICES ARE GOING UP ALL OVER THE WORLD!!!! If you think the grocers are jacking prices in an effort to hurt the average Bermudian consumer then you are a candidate for MAWI! The cost of shipping that stuff to Bermuda has increased (I don’t have facts to back that up, but I’m sure that someone can prove me right or wrong…I know how you JA”S love to do that!) Those costs are then passed on to the consumer. Unless of course you believe the best option is to have the grocers continue providing discounts and thus eventually closing down because they can’t afford to operate…where ya gonna get your groceries from then??????
Prices are not that much better at Win Dixie in Florida.
WHO?…it’s a DUMP!
All civil servants must take a furlough day in order for us to eat cheaper !
This doesn’t even make sense. .
They win soon as it hits the dock cause we all shop! so why make noise? Don’t get it
15% would have been great instead of taking away the 10% could have gave us 15% but noooooo its more people loosing jobs and groceries are expensive smh
Somewhere in the world there is a farm of approximately 16 thousandsacres to feed us…. think about that.
It seems that in Bermuda people just pay the xtra regardless of how much an item went up , yes there is inflation and in states , uk and canada etc it is a poultry amount of pence /cents … And the people are up in arms fighting it etc …. Here a loaf goes up to $10 plus at over a week old at that ( or froz and sold as fresh which goes mouldy even quicker ) and we just pay without question … So yes why do items jump up in whole and double /tripple etc amouts rather than cents ?
Because they can … Do … Will…. and we do nothing
Open your own store if you think it is that easy.
Is everyone forgetting these are not the Government and they are out to make maximis there yearly profits? Is that nolt what all private companys go into bussiness to do??
It’s only a few months since Chris Furbert increased BIU dues by 17%, explaining to his remaining membership that the BIU had to make a profit. So I don’t see why everyone now pretends they don’t understand inflation and the need to run at a profit.
we might have had a choice if only the Co-Op supermarket hadnt been closed due to poor management.