Melcom, Ghana‘s largest retail chain, is aggressively expanding its presence across the country, opening new outlets to bring affordable products closer to consumers. While this strategy offers convenience and competitive pricing, it appears to be disrupting the retail sector, putting pressure on small businesses and vendors by way of pricing, bigger space and easy access to manufacturing companies.
In an interview with SKB Journal, Mrs Roschelle Okyere, Supervisor at Bia Ventures, a grocery shop said, the establishment of Melcom at the malls and communities has led to low patronage among business owners due to pricing and marketing strategies “now everyone wants to shop at Melcom because it’s the modern way of buying stuff”, she said.
Mrs Okyere further observed that Melcom’s presence had led to the collapse of many furniture stores because of the competing brands and prices from Melcom.
“Initially, I used to record high sales but now I only sell one-third of my previous sales in a day” “they say the prices are lower, and they can get everything in one place. I can’t lower my prices and run at a loss”, she added.
Looking at the vast range, it is clear that the emerging and rampant extension of Melcom into communities is causing more harm than good.
Ms Suzzy Ameyaa, Shop Manager, at Golddots Household Shop Limited, also told SKB Journal that Melcom has become a nuisance to most business owners because of its pricing and the availability of product varieties.
She lamented the low patronage of her second shop outlet which is unfortunately at the same location with Melcom, “ever since Melcom came to the west hills mall most shops like Hisense, ShopRite and cosmetic shops are recording low sales”.
The idea of bringing commodities and products closer to the people has one way or the other turned into an obstacle course for businesses.
However, small businesses are calling on government for policies that safeguard small retailers from being pushed out of business, giving text incentives for small businesses to reduce operating expenses, control where large retailers can set up and also to ensure that wholesalers offer fair pricing to both large and small businesses.
Despite the challenges, some small businesses are finding ways to survive and compete by offering credit purchases, using social media platforms and offering unique locally manufactured products like beads and hand made clay crafts.
Nonetheless, as Melcom continues to expand, Ghana’s retail sector faces a major transformation. While consumers benefit from greater accessibility and competitive prices, the survival of small businesses remains uncertain.
