[Photo: File]

Retailers are under growing pressure as business confidence falls, costs rise and urban challenges continue to affect trade, according to the Retailers Association.

Suva Retailers Association President Jitesh Patel said the sector remains active but was struggling with weak customer foot traffic, staffing issues and rising expenses.

He said business confidence has dropped by about 30 to 40 per cent and linked this mainly to low productivity and poor staff attendance, which many businesses are now reporting.

“Well, the cost of business is very high. It’s a supply and demand thing, especially rental. I think a lot of people have no idea how much businesses are paying rent to rent a shop in the city. And then other than that, there are other expenses, what we call the hidden expenses. See, the basic fixed costs are rental wages, like electricity, but there are a lot of other hidden costs that we have to pay. It’s simple, like even if someone uses M-PAISA in our shop, we are paying a fee to Vodafone.”

Patel said operating costs continue to climb and pointed to rent, electricity and what he described as hidden charges, including bank and digital payment fees.

He said these costs are squeezing already tight margins.

He also highlighted the impact of freight costs and imported inflation and said these are pushing up the price of food and essential goods across the country.

Patel said parking shortages in major urban centers are worsening the situation. He said this is affecting customer access in Suva and other towns, while also driving growth in suburban hubs such as Nakasi and Lami.

On security, Patel said cooperation with police has improved. He said retailers have installed about 20 CCTV cameras in key areas, which have helped police monitor incidents including grab-and-run thefts.

More businesses, according to Patel are now being encouraged to install external cameras.

He said there is growing support for the return of business licensing. Patel said this would improve data on businesses, employment and compliance.

The current system, he adds does not provide a clear picture of how many businesses are operating.
On costs and taxation, Patel said recent reductions have had limited impact.

He called for a review of tariffs on imported and environmentally friendly goods and also suggested temporary VAT relief on fuel to ease pressure on consumers.

Patel warned the next six months will remain difficult. He pointed to global uncertainty, rising inflation and weaker consumer spending as key risks for the retail sector.