Grocery store owners demand restrictions on new licenses

Some argue that there is an unnecessary saturation of supermarkets in some areas of the country whereas there is dearth in other areas.

Many grocery shop owners have alleged that the new licenses are being issued indiscriminately in some areas, which is leading to a saturation in such areas. This saturation ends up slashing their revenue because supply outweighs demand in such areas, they argue. The areas include Najma and Mansoura where more than a dozen new stores have opened up during last couple of years. Opening of the new grocery stores have negatively affected the older grocery stores forcing the owners to demand restrictions on the issuance of new licenses.

New licenses are being issued to grocery stores at a time when the demand is falling as many long-time customers have left the country while the rental for the space remains the same, said a grocery store operator.

Residents on the other hand are of the opinion that the grocery stores instead of complaining should focus on improving their services for the retention of customers.

“I don’t mind if a new grocery store opens up in my neighbourhood, I think healthy competition is good for the market, the old-timers need to up their game to stay in the business”, said a Doha resident. Obviously, people who want to open a business must conduct proper market research before setting up shop, as saturation is not good for business, the resident was quick to add.

New licences are being issued to open stores in areas such as Al Thumama, New Salata; these areas already have a number of grocery stores and the demand is not adequate enough to accommodate new stores in a profitable manner, a source said. People wishing to open new stores should do so in areas where there is a dearth of such stores such that the business as well as the residents reap benefits, the source added.