Sun, Apr 07, 2024 | Ramadan 28, 1445
Published: Mon 29 Jan 2007, 9:30 AM
Last updated: Fri 21 Oct 2022, 11:57 AM
Most important among these conditions is that every store should have a minimum area of 75 square metres. Owners of such supermarkets will have between relocating and expanding the structure to comply with the new rules, an official source at the ADFCA told Khaleej Times.
Fixing a minimum area of 75 square metres for building a supermarket would result in closure of many such stores under the dramatic rent hike, which took place over the last year, said owner of a supermarket, Mohammed Hussein.
Annual rental charges of a store built over an area of 35 square metres range from Dh72,000 to 80,000 while that of the structures on 75 square metres area is about Dh200,000, depending on the location and style of the building, he said, adding that sky-rocketing rents were beyond affordability of owners of small-size stores.
Hussein said the profit margin eked out by a small supermarket does not exceed Dh 3 per showcased item. A packet of diapers generate not more than Dh 1 profit; 100 pieces of ice cream make Dh 5 and a packet of Pepsi cans fetches only Dh 3 profit to the owner, he added.
The proprietor also has to bear other expenses such as power bills, TV sets, labour wages and trade license renewal fee.
Most of these outlets sell small products such as cigarettes, bread, soft drinks, sweet and offer home delivery of most needed items by households such as rice, sugar, milk and tea, he said, adding many residents like to buy from big cooperative unions.
He said fixing a list of certain commodities to be sold by these stores is something impractical for them because it simply means slashing margin of simple profit they make. Shutdown of these supermarkets would result in traffic jams on roads and streets around big supermarkets of the city with customers rushing to purchase their household items from there, he cautioned.
He, however, appealed to the officials to consider position of the owners of the small supermarkets who support large number of families and are in compliance with other conditions like general cleanliness, refrigerators etc.
Compared with the conditions set by Dubai Municipality, which fixed 500 square feet or about 150 square metres as minimum area for opening and running a supermarket, the ADFCA has considered the economic circumstances and the rental charges in the emirate of Abu Dhabi without prejudicing the health and hygienic conditions which are required to be strictly followed and observed, an official said.
Stores spreading over an area of less than the required 75 square metres were given a grace period of a year to either shift from their present location or expand the present store to reach the needed level, he said adding that the grace period commences from the date of renewing the trade license.
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