Big retail expansion squeezes small businesses in Fiji’s north

“With the current level of sales and our ongoing expenses, we are left with little to no savings.”

Image: Owner of Gulabdas Limited, Thakorlal Gulabdas, left, with his staff members at his store in Savusavu Town. They have been with the business for the past 30 years (Picture: MOLLYN NAKABEA / Source: Wansolwara News)

By Riya Bhagwan

Small business owners in Fiji’s Northern Division say the rapid expansion of major Viti Levu–based companies is reshaping the local business landscape, leaving long-established Northern enterprises struggling to compete for space, customers and survival.

The story is the same in the two major centres of Savusavu and Labasa. While buyers and consumers are happy with the extra choice, variety and competition, small business shop owners who have served the market for decades worry about their future survival.

Thakorlal Gulabdas, owner of Gulabdas Limited in Savusavu, revealed that several local businesses have had their store spaces taken over by well-known Viti Levu-based companies expanding into the town.

“The arrival of these Viti Levu giants has created tough competition and is impacting our business. They come with a charm and appeal that local businesses are unable to compete with.”

After more than 50 years in hardware, Gulabdas Ltd is feeling the impact of nationally renowned businesses and large chains moving into the town in recent years, with concerns that smaller enterprises with decades of history in Savusavu may be pushed out.

Mr Gulabdas shared that most of the original business owners have now opted to step back and lease their properties to the new businesses, instead of competing with them.

This is especially the case where the younger generation is not interested in continuing the business. Some of the bigger businesses that have expanded their branches to Savusavu include Courts, Harrisons, S. Nagindas, Jack’s of Fiji and Fresh Choice Supermarket.

Similar sentiments were expressed by Prakash Chand, owner of Moon Enterprises, who said the arrival of big players has severely impacted small, local businesses.

“Business was, in fact, better for us during the COVID-19 period. Recently, we have seen a significant decline in our sales,” said Mr Chand, who owns a small second-hand apparel store.

High rental rates in Labasa forced him to relocate his business before eventually moving to Savusavu in 2013. He called on the Government to step up support for small businesses like his, which are struggling to stay afloat in the competitive market.

“With the current level of sales and our ongoing expenses, we are left with little to no savings.”

Meanwhile, Chhaganlal Store, which has served the Savusavu community for six decades, described its business as “on and off”.

“Before, we used to know that government pay week meant busier days, but now it doesn’t make much difference. It’s basically the same — it keeps fluctuating,” said Susana Koroi, who has been an employee of Chhaganlal Store for 30 years.

She noted that business dynamics have changed significantly since the COVID-19 pandemic.

The drop in sales reported by Northern businesses comes in the wake of post-pandemic developments, highlighted by the rapid expansion of major Viti Levu companies into the region. Shamila Bi of Labasa, who operates a small footwear store, said the situation is no different there.

The Damodar City Complex in the heart of Labasa has been welcomed by residents, but according to Ms Bi, it has “truly been a major business killer” for small businesses like hers.

She said that as more well-known businesses from Viti Levu enter the Labasa market, it will become even harder for small operators. As more big names stake their claim in the Northern Division, local businesses are being forced to step up just to stay in the game.

This article was first published on Wansolwara News and has been republished with permission.

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