Businesses register low sales

Business in Kampala is experiencing a low return in sales and customers after the festive season. While conducting a survey around the streets and major shops in Kampala, the Daily Monitor found out that the business glee and bliss has turned lacklustre, as traders blame the situation on the increase in fuel prices, cost of transporting the goods and the global financial crisis.
At a Bata retail outlet on Jinja Road, Phyllis Nyago, a cashier blamed the low sales to high taxes on imports, increase in the cost of the raw materials which are imported from Pakistan and the increase in the price of the dollar in the world market. Despite reducing the prices of some footwear from Ush85000 to Ush50000, there was a low purchasing power from customers as most of them seemed sceptical of such price decrease.
Phyllis partly attributed this low return in sales to the fact that many customers bought the goods before the festive season and a majority of them might not need the goods now or are broke.
"After the Christmas season, business is very low. We are doing badly," Phyllis said.
She however acknowledged the fact that there was no shortage of foot wear at the Bata outlet on Jinja Road.
Mike, a trader on Jinja Road, said business was dull before the festive season. The situation changed slightly with the advent of the festive season as customers came in droves, buying gifts like Xmas cards, inspirational books, bibles and jewellery. At his outlet, prices were quite stable. He sells most of his goods at a negotiable price.
However, with the end of the festive season, it's business as usual. There's a low turn up of customers. The New Year might change the situation slightly.
At Uchumi Supermarket in Garden City, though there seemed to be an unpromising presence of customers, Otika Chrispin, the floor manager at the Uchumi outlet claimed business was normal before and after the festive season.
"There has been no big change in sales," he said.
He pointed out that the demand for goods like flour, sugar and mineral water went up but there wasn't acute shortage. At the outlet, there was no increase in prices but there was a discount on some of the goods purchased.
Andrew Kyabande, another trader at Jumaira Enterprises, electronics’ shop on Market Street said business was constant but the high taxes are affecting their business as they cannot increase or lower the prices.
"This is a competitive business and therefore, if you increase the prices, you lose the customers to your competitor," Kyabande said.
However, most electronics’ shops along Market Street and Kampala Road had reduced their prices by approximately 12%. Most of the traders wanted to win back customers since the festive season saw an increase in product prices.
At Nakasero Market, the prices for essential consumer goods like matooke, cabbages, and apples remained high. Traders attributed this to the high cost of transportation.
Abdi Salim, a trader at the market said that the price of matooke ranged from Ush10000 to Ush25000. Before the festive season, prices for the same products cost between Ush6000 to Ush10000.
Ssekitto Issa, a public relations officer of Kampala City Traders Association (KACITA) claimed the sales before and after the festive season were fair. He linked the situation to the evacuation of traders from the city centre, which restored sanity.
This pushed all traders and clients to shopping malls, supermarkets, retail outlets and markets.
"Automatically, demand was high and prices, especially for edibles, had to go up," said Ssekitto.
However, he added that without government intervention, the fuel crisis will determine price controls.
"Prices will automatically go up," he pointed out.
Joshua Masinde and Isaac Khisa