By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Supervalue’s owner says retailers will have to ‘wait and see’ what margins are allowed on the items to be added to the breadbasket list, noting if the low grocery margins are used for such perishable items it could force smaller retailers out of business.

Rupert Roberts believes the move to add more fruits and vegetables to the breadbasket list is a good thing and lauded Health Minister Dr Duane Sands for his efforts.

“What we know is that they are going to put certain produce items on the breadbasket list,” said Mr Roberts. “We don’t have a problem with that but a problem could arise with regards to the margins which could devastate the supermarkets and force the small retailers out of business and our five or six inner city stores if they use the low grocery margins for perishables.”

He added: “There’s no point speculating on the margins. We have to wait and see. We assume they would give us a margin to pay our expenses. If they try to use the grocery margins for perishables it could wipe out the small stores. We would really have to fight that if we don’t get the proper margins but I assume we will. We know the items, we know they intend to price control them but at what margins? Even with margins not everyone is going to sell at the same price and the way things works it could be a 20-30 percent price difference between stores.”

Health Minister Dr Duane Sands during his contribution to the 2019/2020 budget noted that new healthy items will soon be added to the country’s breadbasket item list.

“Specifically, Bahamians can look forward to spinach, broccoli, romaine lettuce, apples, oranges, strawberries, beans, peas, almonds and so much more being not only vat-free, but price protected,” said Dr Sands.

He did not say when the new breadbasket list will come into effect. As of August 1, 2018, VAT was removed from all breadbasket items, except sugar.