Promotions in supermarkets have increased due to competitiveness

• The National Association of Supermarkets and Self-Service Stores hopes that Venezuelans can be encouraged to consume

The president of the National Association of Supermarkets and Self-Service Stores (ANSA), Italo Atencio, said on July 18 that the growth of units in the sector is estimated for the end of the year between 3.5 and 4.5%.

“In the first half of the year, the sector grew by 3%, which is a sign that the sector is in motion, in transformation, that there is an increase in national production in various areas,” Atencio said in an interview for Union Radio.

The union spokesman said that supermarket promotions have increased, as competitiveness has also grown.

“We must take care of the consumer, with details, good customer service, with a shopping experience, with better prices and evaluating purchasing behavior, because in Venezuela it changes from week to week,” said the president of ANSA.

He added that in order to encourage consumption, the proposal is still under discussion before the Productive Economy Council Four days a year without the collection of Value Added Tax (VAT)which is also part of the project that was delivered to the Ministry of Commerce three months ago.

Photo: Jose Daniel Ramos @danielj2511

“This will break the inertia of consumption in Venezuela, it will be very interesting for trade, suppliers and consumers. We are sure that it will come soon,” said the union spokesman.

Atencio explained that the proposal is based on the experience of other Latin American countries, such as Colombia.

“The underlying meaning of the proposal is that the value chain is preparing because it knows that on that day it will have at least a 16% advantage in prices, additional discounts with brands that want to take advantage of this to move products,” said the president of ANSA.

Details of the VAT-free day proposal

Atencio explained that the plan contains nine actions to promote and develop the retail sales sector in Venezuela, however, the consumer would have some purchase limitations during the days established without the collection of the tax.

“The consumer might only buy three units of each product, because it can happen that he buys in bulk and ends up reselling them,” said the representative of ANSA.

Getty Images / Unplash

The sector also suggested that the last day without VAT be planned for the month of December, between the 10th and 12th, as people might take advantage of the opportunity to do their Christmas shopping.

While for electronic purchases the VAT-free day would apply as long as the delivery of the product is made before the tenth day from the moment of the promotion.

The sector’s proposal is to implement a VAT-free day every four months to achieve an impact on consumption and reduce the operating costs of retailers in Venezuela.

The ANSA president said that they had initially designed the plan only to be applied in supermarkets, but in the second proposal they decided to extend it to the retail sector in general.

“We have to test how this mechanism works in the country. In Colombia it has been very successful,” said Atencio.

Related news