Foreign neighborhood stores are unbeatable in terms of price: That’s why smaller ones are cheaper than bigger ones

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In colloquial language, they are generally called “Turkenlädeli”. This is in no way meant to be derogatory; just the opposite. The atmosphere in the stores is familiar, the service is friendly and the products offered range from the Balkans to the Bosphorus and Asia. Plus, fruits and vegetables look fresher and prices are often unbeatably low. Stores with small sales areas often also have room for a meat counter.

Small and medium-sized branches of large distributors cannot keep up. Even in terms of price: Foreign local stores close to the public are usually 20 to 30 percent cheaper, “SonntagsZeitung” writes. The newspaper examined two of these neighborhood stores in Zurich and Biel and compared their prices with neighboring Migros and Coop branches.

Margin waiver

What is noteworthy: For some products, the small ones dictate the prices to the big ones. For example, a kilo of potatoes costs 1.90 francs at Barkat in Zurich Wiedikon, and 2 francs at the neighboring Migros branch. In Biel, the price difference is 10 cents, but it is much higher. The price of potatoes is 3.30 francs at the Alima store and 3.40 francs at the Coop branch at Biel train station.

Neighborhood shops are unbeatable in terms of price, especially when it comes to fresh products such as meat, fruits and vegetables. “Our ability to offer competitive prices stems from the combination of efficient operations, careful cost management and strong relationships with our suppliers,” said Alima CEO Ahmet Yilmaz. This allows it to pass on lower prices to its customers.

Barkat also buys cheaply and sources many products from foreign wholesalers. And it gives up generous margins: “Our margin is a maximum of 50 percent, especially for expensive products,” says Danish Khawaja, one of the general managers of the branch in Wiedikon. What probably plays a role is that it’s not just the atmosphere that’s familiar. Often the whole family helps out in the store, which can make it easier to offer lower prices and longer hours. (Ah)

Source :Blick