Small-sized business owners at the Abaita Ababiri Trading Center have called on the government to intervene and regulate prices at China Town, a newly opened supermarket that they claim is severely impacting their sales and threatening their livelihoods.
During an interview with a Nexus Media reporter, several traders expressed their concerns about the drastic decline in sales since the opening of China Town, which offers products at significantly lower prices compared to local businesses.
Sandra Nakyanzi, who runs a shop selling nail and hair products in the Abaita Ababiri Hub Building, shared her struggles and said, “Our sales have dropped so much; we do not know how much longer we will continue like this. The government should regulate prices in China Town as fast as possible.”
Nakyanzi explained that prior to China Town’s arrival, she and her colleagues sourced their products from downtown Kampala at high prices, compared to China Town, and now no one is willing to buy at their retail price yet they have a better option.
“This has driven all our clients away; since they are already stocked from China Town. We can’t make ends meet in such a business environment that is not favorable to all,” she added.
Nickolas Namonyo, owner of Delight Salon, voiced his sympathy for local retailers but acknowledged the allure of cheaper prices at China Town.
“It is challenging for the retail shops whom we have been supporting by purchasing their products; however, I can’t miss out on such an opportunity to purchase goods at a cheaper price,” he said.
However, Namonyo questioned the government’s decision to allow China Town to operate at such low prices, warning that it could lead to the closure of many local enterprises.
“Local businesses are already suffering at the hands of China Town, yet the financial year ended and people from council will soon demand trading licenses and landlords also for their rent,” Namonyo noted.
China Town Super Store Uganda, which opened its doors in Lugogo on August 31, 2024, offers a wide range of products, from home and office furniture to beauty supplies and electronics, to mention but a few, at lower prices than usual.
As the competition heats up, local traders fear they may soon be forced to close their businesses if the situation remains unchanged.
The traders’ plea highlights the ongoing challenges faced by small businesses in the region as they navigate a market increasingly dominated by foreign-owned entities. With their livelihoods at stake, they are urging the government to take action before it’s too late.
