BCEN knocks spending advice

The Barbados Consumer Empowerment Network (BCEN), led by its executive director Maureen Holder, has serious concerns about recent advice from the Barbados Chamber of Commerce and Industry (BCCI) to make purchases early in anticipation of future price increases.

 This advice, given by BCCI president James Clarke and chairman of the BCCI’s Revitalisation of Bridgetown Committee Eddy Abed in another section of the Press, alarmed the BCEN, which believes that such a message could further burden already struggling consumers.

In a recent press statement, Holder questioned whether the BCCI genuinely considered the financial realities faced by Barbadian households. 

“Does the BCCI believe that the average Barbadian consumer has the disposable income to follow this advice?” Holder asked while pointing out that inflationary pressures have already made basic living costs difficult to manage for many.

She cautioned that the message could provoke unnecessary panic buying, disproportionately benefiting retailers while further straining consumers.

Holder also highlighted the inconsistency between the BCCI’s advice and earlier warnings from Senior Minister Kerrie Symmonds, who urged Barbadians to be cautious with spending as the country braces for potential economic fallout. The contrasting messages – one promoting careful spending and the other encouraging early purchases – have left many consumers unsure of how best to navigate the current economic climate.

The BCEN president further criticised the BCCI’s emphasis on price increases as inevitable, especially given the lack of clear evidence to support such claims. While global freight costs and geopolitical issues do play a role in driving up prices, Holder argued that many goods currently on the market were bought at lower freight rates, and there was no indication that these would suddenly see higher prices.

 She questioned how much stock retailers already hold and whether all businesses are likely to see the same increases.

“Is this advice relevant to all retailers or just a select few?” Holder asked, referencing businesses like Abed’s, which were specifically mentioned by BCCI leaders.

Holder pointed out that while global conditions do impact costs, local pricing strategies, including retail markups, are also responsible for the high cost of living in Barbados. She expressed disappointment that the BCCI had not addressed these internal factors and suggested that retailers could mitigate some of the external cost pressures through more strategic pricing and smarter supply chain management.

“The suggestion that price increases are solely driven by external factors like freight rates ignores the local realities that also contribute to rising prices,” Holder stated. She also reminded the public of the potential for global economic shifts, such as the upcoming US elections in November, which may influence policies around price control and fairness.

Instead of urging consumers to rush into early spending, Holder called for more thoughtful solutions that could benefit both consumers and businesses. She advocated for exploring local alternatives to imported goods and negotiating better freight deals to reduce costs across the board.

“While some may have the financial resources to shop early, the reality is that this is not an option for the majority,” Holder warned, adding that consumers should not feel pressured to spend before they are financially ready. She urged Barbadians to weigh the BCCI’s advice carefully and avoid taking on unnecessary debt, particularly in the lead-up to the Christmas season when early shopping loans could compound financial difficulties.

Holder reiterated BCEN’s commitment to advocating for Barbadian consumers, calling on businesses to prioritise long-term strategies that ease the burden on households, rather than pushing for short-term sales at the expense of consumer welfare.

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