BCEN responds to ‘buy early’ message from the BCCI

he Barbados Consumer Empowerment Network (BCEN) has warned that a message by BCCI urging Barbadians to make early purchases in light of anticipated price rises could induce panic buying, potentially benefiting retailers at the expense of consumers.

Below is the complete statement issued by the BCEN:

The Barbados Consumer Empowerment Network (BCEN) expresses surprise and concern over recent statements made by BCCI President James Clarke and Eddy Abed, Chairman of the BCCI’s Revitalization of Bridgetown Committee. Both individuals urged Barbadians to make early purchases in light of anticipated price rises.

In the current context of growing inflation, BCEN questions the assumptions behind such advice. Does the BCCI genuinely believe that Barbadian consumers, many of whom are already struggling to make ends meet, have the disposable income to act on this advice?  BCEN warns that the BCCI’s message could induce panic buying, potentially benefiting retailers at the expense of consumers. It also risks artificially driving demand, pushing Barbadians to spend prematurely or excessively, even when there is no immediate need for goods. The question arises: is this really in the best interest of consumers?

Only recently, Senior Minister Kerry Symmonds advised Barbadians to be cautious about excessive spending and to brace for potential economic fallout due to external factors. Now, the BCCI urges consumers to “spend early” to avoid future cost increases driven by the same external circumstances. This conflicting advice from both the government and the private sector leaves consumers uncertain about their financial decisions. The BCEN asserts that the “buy early” message feeds into the cycle of seasonal consumerism, a luxury that many Barbadians cannot afford. Given the high cost of living, early shopping is not financially feasible for a significant portion of the population. Encouraging this behavior may place additional strain on households, particularly those relying on holiday discounts to manage their budgets.

Furthermore, BCEN is concerned by the lack of solid evidence backing the projected price increases. While global freight rates do influence prices, the connection between these external costs and local retail prices is not as direct as the BCCI suggests. Goods already in stock, as acknowledged by the BCCI, were purchased at lower freight rates. What volume of stock do retailers have on hand, how far will the stock reach? Is it all retailers or just Abeds and others known to Mr. Clarke?  These questions need answers.

Price increases will likely vary across retailers and products, meaning broad claims of inevitable price hikes could be misleading. BCEN notes the failure of the BCCI to address local pricing strategies and retail markups, which also contributes to the high cost of living in Barbados. It is inaccurate to imply that external factors such as freight rates and geopolitical conflicts are solely responsible for price increases. Retailers are in a position to manage fluctuations through smarter pricing strategies, supply chain improvements, and seeking fair/sober profit margins.

BCEN urges the BCCI to focus on the economic realities of Barbadian consumers and to offer meaningful solutions, rather than merely presenting price increases as inevitable. The upcoming U.S. elections could potentially impact global economic conditions, including efforts to address price gouging and unfair pricing practices, as previously discussed by U.S. political figures. The generalization of an unavoidable price surge, without considering such factors, could mislead the public. The message appears to prioritize business profits over consumer welfare, leaving key issues such as local pricing strategies and markups unaddressed.

Instead of urging consumers to buy early, BCEN suggests exploring solutions that would ease the impact of rising costs, such as promoting local alternatives or negotiating better freight deals, which would benefit both businesses and consumers. BCEN advises Barbadians to approach the BCCI’s advice with caution. Acting on the BCCI’s message could lead to unnecessary financial strain, particularly for those already facing rising living costs. While BCEN acknowledges that some consumers may have the resources or desire to shop early, we emphasize that this option is not viable for everyone. No consumer should feel pressured to spend before they are financially ready or take out early Christmas shopping loans which are likely to add further financial strain.