While social discontent regarding the continued price increases of most consumer goods continues to grow, small businesses are crying out once morest this situation from which they hardly benefit, quite the contrary.
It’s an open secret, the rise in hydrocarbons at the global level has great repercussions on the prices of raw materials both on national and international markets. In this economic cacophony of modern times in the Kingdom, it is the small traders who suffer enormous losses, toast. This prompts many of them to close up shop. A source from the Association of Food Traders of Agadir indicated that the rise in prices has accelerated the closure of shops and other food groceries, due to the impossibility for their owners to build up capital guaranteeing them the access to supply.
The reasons, an obvious lack of profits on the one hand, and above all this label of “Moul Hannout” which has lost its main advantages inherent in proximity and the credit books which make it possible to relieve many families. Yep, that’s where the rub is because most of these traders sell on credit. An activity of small shops accompanies the daily life of Moroccans since distant times.
The small grocery store, it should be remembered, grants interest-free loans to neighboring residents. The credit books, if it suits the two camps, weaken the liquidity of “Moul Hannout” and the finances at its disposal. According to data obtained by Hespress from professionals in the trade sector, the profits of small traders have remained stable despite the huge price increases recorded. For example, when the price of a 5 liter bottle of cooking oil was around 160 dirhams, the profit margin was 15 dirhams (1 dh/l) whereas currently, with a price doubled, it is always the same benefit.
Small grocery stores found themselves between a rock and a hard place, either retaining their customers by selling at a loss due to competition or speculating. Indeed, many traders have stored goods purchased before their prices increased and resort to reselling them at a good price, let’s say, which places those whose acquisition was made following the increase in the embarrassment.
Two options are suddenly available for the latter to sell more expensively, and therefore lose customers, or not to acquire goods, thus depriving themselves of a source of profit. And regarding a source, that of the Association of Food Traders of Agadir who spoke with Hespress, she described the situation in which small traders live as “catastrophic” explaining with regard to oil vital substance for many homes, ” the cheapest bottle of edible oil (five liters) currently sells for 115 dirhams, but the trader’s profit margin does not exceed four or even five dirhams, and most often this merchandise is sold on credit “, adding that this situation is pushing a number of traders to abandon the sale of expensive foodstuffs.
Also, there are strong fears that the continued rise in prices will lead to a drop in the supply of goods to small grocery stores, because the merchants who are able to supply goods are those who do not only do “credit” and they are increasingly rare. Abdallah El Hanafi, president of the Federation of Commercial, Professional and Craft Associations of Morocco, confirmed that the price hike had caused great harm to small traders and told Hespress: “Companies have increased the prices of their products, but without allowing the merchant a profit margin”,adding“that in the past, she was already weak“. Also, unless there is fierce resistance once morest the crisis which continues to ignite, we have to believe that small businesses and particularly those in the neighborhoods are living their last days.
