The retail sector is feeling the impact of slow consumption as rising costs are cutting into disposable incomes, compelling consumers to tighten their spending.
In its June Economic Review, the Reserve Bank of Fiji reported that while consumption remains positive due to tourism, higher incomes, and remittances, “the ongoing loss of people and high cost of living have dampened its momentum.”
Jitesh Patel, the president of the Suva Retailers Association, shared with this newspaper that retailers are starting to notice the effects as well.
“We partially agree with the Reserve Bank’s remarks. The consumption slowdown in certain sectors is partly due to migration. We’re losing high-income earners and the established middle class who contributed significantly to market spending. Their departure, along with new workers taking up jobs, has created a bit of a slowdown which retailers are feeling,” said Mr. Patel.
He added that Suva retailers have shown great resilience and continue to endure challenges.
“We have faced numerous obstacles over the past few years but have remained strong. Most retailers have been in the business for a long time and are accustomed to pressure. Business can be unpredictable, like gambling; some days we lose, some days we win, but ultimately, retailers are resilient, know what to do, and will get through this.”
Regarding the high cost of living’s impact on workers, Mr. Patel noted that some community members are adept at budgeting and have accumulated savings, allowing them to shop around.