Hypermarkets using ‘dirty tricks’ to lure away customers
SMALL SHOPKEEPERS union POVEK General-secretary Melios Georgiou yesterday outlined the problems faced by small- and medium- sized businesses in the wake of what he called “unfair competition” from large businesses and hypermarkets.
Georgiou warned that if more small businesses were unable to keep up with the competition and forced to close down, “our society” would be on a collision course with disaster.
“As a State we will have to face very negative phenomena, such as an increase in unemployment, family and social problems, the absence of the social contribution made by small businesses in neighbourhoods and small communities, the creation of oligopolies and the eradication of every fair, health competition, resulting in the increase of prices and the unfair exploitation of consumers,” he said.
Georgiou said hypermarkets and chain stores began their sales during the middle of December and June, well before the set periods.
“Forced to follow suit, other retail shops do the same and so a serious problem and great instability in the market is created,” he said.
He said hypermarkets offered discount on clothes and electrical goods if customers bought certain foods or took part in loyalty programmes.
“We are asking that certain amendments be made to the law forbidding hypermarkets from offering discounts on items that the law protects outside sales periods (footwear, clothes, furniture and electrical goods); to ban advertising sales outsides sales periods and to increase violation penalties,” he said.
Another violation hypermarkets frequently made was to claim to sell goods at a discounted value from the first day the product hits the shelves. Georgiou said hypermarkets were supposed to clearly label the before and after prices so that the consumer could verify if this was the case, or if instead the shop owner was using misleading labelling.
Hypermarkets also sold products below cost price, making breaking even for small businesses next to impossible, said Georgiou, who called for an end to this practice.
“There is no EU law that forbids making a law to stop selling goods below cost price. In France, Belgium and Greece, such laws already exist,” he said.
A large number of hypermarkets also used misleading advertising to entice consumers through their doors.
“They advertise that their products are half the price compared to anywhere else, when in fact only a few products are half the price,” he said. “We have also had hundreds of complaints that hypermarkets also say they’ll give you a specific gift if you spend x amount of money and then when you go to claim your gift they say they’ve run out of stock. Others advertise they have offers on certain goods they don’t even have on the shelves and then say they ran out earlier in the day.”
Although the current law on misleading advertising bans hypermarkets from repeating the same offence, Georgiou said the penalty should go a step further.
“Offenders should face a hefty fine and even imprisonment if they systematically violate the law,” he said.
Finally POVEK said it wanted working hours regulated by law. He said many shopkeepers unfairly held cocktail parties at the weekend or late at night and then tried to sell their wares at a discount. As for coastal towns, he said many shops were granted extended working hours and yet they were not situated in the tourist strip.
“Small retail businesses are facing the greatest crisis in their history. If we don’t get the response we want from the relevant authorities we will call a Pancyprian General Meeting of all retail shop owners to discuss what serious measures to take,” he said.
POVEK is meeting Commerce Minister George Lillikas to discuss their grievances next Friday. The following week the union has a meeting with Labour Minister.
