UAE: No price hikes for rice, coffee, oil at major hypermarket chain

Carrefour’s latest price-lock initiative covers more than 200 everyday essentials

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Published: Thu 27 Oct 2022, 12:04 PM

Last updated: Thu 27 Oct 2022, 7:40 PM

Major hypermarket chain Carrefour on Thursday announced that it is freezing the prices of more than 200 everyday necessities in the UAE until the end of the year.

Aiming to help its customers stretch their budgets amid the rising costs of living across the globe, the retailer negotiated with its suppliers to lock in the prices of several items that usually go in residents' grocery carts.

Among the products that will be covered by the initiative are pasta, rice, cooking oil, ground coffee, and sugar.

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The move will see cupboard essentials, sweet and savoury snacks, and spreads all frozen "at the lowest possible price", Carrefour said in a statement.

Christophe Orcet, head of commercial and operations of Carrefour at Majid Al Futtaim Retail, said: “Understanding the economic concerns facing many families around the world, Carrefour remains committed to mitigating the effects of inflation through our various low-pricing strategies."

Globally, prices of fuel and basic commodities have been rising due to various international issues including Covid-triggered disruptions of global supply chains and the Russia-Ukraine conflict — but the UAE has been doing all it can to cushion the local impact.

Earlier this year, the UAE’s Ministry of Economy approved a new policy to keep the prices of more than 11,000 basic food items in check. As per the policy, suppliers will have to submit evidence to justify price increases of some of the most sought-after items, including fresh and dry milk, fresh chicken, eggs, bread, flour and mineral water among other things.

Other retailers, such as Lulu Group International and Al Maya Group, had also announced plans to limit the impact of global price hikes on the Emirates.

Lulu Group International had set up an infrastructure to minimise the cost caused by the third-party involvement of distributors and importers while also promoting its private label products, which are more economically priced than competitive brands.

Meanwhile, Al Maya Group said they had been working with administrative associations, such as the Food Corporation of India (FCI), and organisations within the UAE Government to ensure that there were no supply chain disruptions.

Many residents have opted for online shopping as a way to cut down on the cost of groceries. Several e-commerce players also offer a variety of money-saving mechanics to support their customers on top of their deals, such as additional discounts and cashback on credit cards.

According to a study by Mastercard, around 73 per cent of UAE consumers have preferred to shop more online since the onset of the pandemic in early 2020. Due to the increasing demand, retailers are increasing the strength of their delivery fleet by deploying more energy-efficient bikes in the coming months.

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