It seems like only yesterday that the environment for supermarkets was calm and benevolent and undisturbed.
A small number of reassuringly unfamiliar businesses have dominated everything and continue to eliminate the once flourishing supermarket business.
Just a few years ago, came an extinction event which saw the once big supermarkets like Uchumi and Nakumatt close shop. A weekly shop was becoming the norm and so large supermarkets offering everything else that retail shops never offered.
Today, it is a different story with supermarkets across Kampla suffering slumping sales and feeling the effects of a fundamental shift in the business world.
Sports Betting
Everything was plain sailing until sports betting was introduced on the Ugandan business scene. This has truly shaken up the supermarket business with their betting shops open in every location.
Lately, almost every major city has Betpawa or Betin, or Betway and any other company offering betting in Uganda. This is due to the fact that the betting industry has taken a major rise. The famous word of “yuza akapapula” is something you will hear every after a football match watched in Binbanda and other sports bar in Uganda.
At least each trading centre in Uganda has more than 4 betting outlets. A recently observed example is along Biina –Portbell stretch, only two out of five supermarkets are still in operation and the rest have been replaced by betting companies.
Currently, the amount of shillings Ugandans spend on betting ranges in millions of shillings. Almost 70% of the Ugandan youth are involved in gambling and betting. On top of this, it has been made easier with the introduction of online betting where the corporate participate from their offices.
Supermarkets are finding themselves in position to battle betting companies which are largely succeeding. Ben Mendo, 28 says that sports betting is making more sales than normal supermarkets. “Supermarket owners are at times struggling to pay rent because they do not make enough profit as compared to betting shops. When a betting company offers more money to a commercial building owner, the supermarket will definitely not survive. My friends and I bet everyday and it is not every day that someone will go to the supermarket for shopping.”
On an occasion, where sports betters are anxiously waiting for their receipts to mature and earn big on a Saturday night, retail shop owners, located near betting centres are open selling cheap booze and also showing the match. This interdependence is very strategic in a way that as a winner gets his bet reward, it is possible that he will pass by the retail shop and purchase his needs on his way home.
Competition policy and Customer choices
In the consumer market such as groceries, customers have it in their power, to make the demand side of shop work well. Supermarkets are in high competition with retail and grocery shops which have over the years upgraded with necessary preservation mechanisms.
And not to forget the lower prices offered by retailers. Most certainly, customers run to shop where they have bargaining powers.
It is now good news that retail and corner shops open all hours and stock everything from ice cream, electronics and fresh foods.
“Gone are the days when buying at the supermarket looked cool, considering the fact that these days retail shops have all needs and at lower price than supermarket, I gladly opt for these shops other than spending much at the supermarket” says Arnold Mugabi.
He adds that it is not like people do not want to go to supermarkets like Shorprite or Tuskys, they have all items in their face even while on the road. “I can almost buy everything I need on my home during traffic jam. There are vendors with fresh fruits, vegetables, toilet paper and others. We can almost get whatever we need from the streets. Sometimes I don t have to get out of the car but I end up buying everything”
Online shops
Next came the digital revolution, which in turn had a seismic impact on the way people shop. Online shopping is indeed getting convenient and due to the fact that ustomers don’t need to go outside to shop; they can do it simply by moving their fingers. They are also able to browse several online retailers at the same time to find the best price. Keneth Okol a resident of Kiwatule says “Traditional supermarket shopping has had a tough time lately. For people who live around Kampala without a car, like myself, online shopping is the best way for people like me. I just make an order on line and my items are delivered to me without having to get out to line up at the supermarket cashier”
For some customers, Online shopping sometimes offers certain privacy because they can buy whatever they want without meeting people face to face. Moreover, while people are getting more and more familiar with those technologies, anyone can be the consumer, and anyone can be the supplier.
