Consumers have criticized what they describe as a decline in the societal role of cooperatives regarding commodity prices, pointing out that some 'cooperatives' offer goods at high prices compared to those in commercial retail outlets (which are purely profit-driven), demanding the activation of the societal role of 'cooperatives' and a commitment to offering lower prices for goods to a greater extent than other retail outlets. They told 'Al Ittihad' that it is natural for prices in commercial retail outlets to be generally higher than in 'cooperatives,' and not the other way around, as the goals of those outlets are focused solely on profitability, compared to 'cooperatives,' which are known in various countries for having a societal role. In turn, cooperative officials stressed the need for a comprehensive comparison of goods, not individual items, between 'cooperatives' and other commercial retail outlets, to clarify the competitiveness of 'cooperatives' prices. They said that 'cooperatives' operate in a competitive manner that allows them to increase sales and profits, while at the same time not neglecting their societal role. Societal Role. In detail, consumer Mohammed Hussein told 'Al Ittihad': 'I was surprised by the high prices of some types of vegetables, fruits, and other goods in some cooperatives compared to their counterparts in other commercial retail outlets.' He noted that he tracked the price of a type of rice in a cooperative at 18.70 dirhams per pack, compared to 17.99 dirhams for the same pack in other outlets. On the other hand, consumer Ibrahim Jamal said: 'It is natural for prices in commercial retail outlets to be higher, with their focus solely on profitability, compared to 'cooperatives,' which are supposed to have a societal role that transcends mere profitability in many countries, and therefore, prices for goods in them should be lower.' He added: 'The price differences may be slight in some cases, but they remain higher in 'cooperatives' than in commercial retail outlets.' He pointed to the price of a well-known brand of honey that is sold in one of the 'cooperatives' for 31.25 dirhams, compared to 30.45 dirhams in non-cooperative outlets. Consumer Yusuf Hamid, for his part, said: 'Cooperatives are required to activate their societal role and commit to offering prices lower than their counterparts in commercial retail outlets, and not to focus solely on profitability.' He noted that prices for some goods, such as flour and cooking oils, rise by 50 fils or a dirham in some 'cooperatives,' which is unacceptable, especially when this is repeated with other goods, especially foodstuffs. Cooperatives' Discounts. In the same context, consumer Mohammed Abdel Rahman said: 'Many goods are sold in 'cooperatives' at higher prices than in other retail outlets, although it is assumed that prices in 'cooperatives' should be lower than in other retail outlets, or at most, the same.' He added: 'For example, one 'cooperative' offers a type of oil with a capacity of 1.5 liters at 25.75 dirhams, while in other retail outlets it is sold at prices ranging from 24.10 to 24.20 dirhams. Also, one 'cooperative' offers a type of soap at 8 dirhams per piece, while in other outlets it is sold for only 5 dirhams, with retail outlets offering a pack of four pieces of this type of soap for 18.30 dirhams.' Abdel Rahman noted that discounts on foodstuffs are few in some 'cooperatives,' especially on poultry, meat, milk, and many types of vegetables and fruits, pointing out that discounts are often concentrated on non-food items, such as electrical appliances, utensils, detergents, electric kettles, shampoos, and toilet paper. Consumer Rami Suleiman, on his part, told 'Al Ittihad' that he noticed many goods are sold in 'cooperatives' at higher prices than in other retail outlets. He gave some examples, saying: 'For instance, chilled chicken is sold in retail outlets at 28 dirhams per kilogram, while we find it in one of the 'cooperatives' at 31 dirhams per kilogram. Also, a tray of eggs of 15 pieces (large white size) is sold in retail outlets at prices ranging from 13.40 to 13.50 dirhams, compared to 14.50 dirhams in one of the 'cooperatives' for the same type.' Rami agreed with him that discounts on foodstuffs in many 'cooperatives' are few, especially on dates, meat, rice, and nuts, while 'cooperatives' offer discounts on non-essential food items for consumers, such as juices, pastries, carbonated water, and several types of biscuits and chocolate. As for non-food items, discounts are concentrated on washing powders, toothpaste, paper tissues, covers, and barbecue accessories. Consumer Nada Al-Shamsi, for her part, said that discounts by 'cooperatives' on essential foodstuffs are sometimes few and include a limited range of goods, such as water, some types of legumes, snacks, and chips. She added: 'But discounts are mainly concentrated on non-food items, such as some types of cleaning and disinfectants, facial and body care products, gloves, and others.' Consumer Salma Ali said that she noticed that the percentage of discounts on some goods in 'cooperatives' is lower than in other retail outlets. She added: 'One of the 'cooperatives' recently offered a discount on a brand of paper tissues, and the price dropped from 17 to 13 dirhams, while the price of these tissues with discounts in other retail outlets is 9 dirhams.' She also pointed to variations even among 'cooperatives,' where one 'cooperative' offered a discount on a dishwashing liquid, and the price dropped from 19.95 to 12 dirhams, while the price after the discount in another cooperative was 14.30 dirhams. Competitive Prices. In turn, the CEO of the Union Cooperative, Mohammed Al-Hashemi, said: 'Prices in 'cooperatives' are competitive. Whoever assumes that prices for goods in 'cooperatives' are higher than in other commercial retail outlets should conduct a comprehensive comparison by comparing a shopping basket of goods with those in those outlets, not just comparing individual goods. There could be many goods in 'cooperatives' that are cheaper than in other retail outlets.' He added to 'Al Ittihad': 'The cooperative is committed to providing goods at low prices and continuously conducts market research to compare prices on important goods that include a list of about 100 items, and the prices of cooperative goods are always competitive compared to others in retail outlets, in addition to a policy of fixing the prices of many goods that it applies in its outlets throughout the year, which ensures providing goods at discounted prices to consumers.' Al-Hashemi confirmed that 'the cooperative' pays attention to its role in maintaining sufficient stockpiles of goods in markets in sufficient quantities and providing competitive prices that help protect consumer rights and stabilize markets, which represents an important role for it in the markets. Comprehensive Comparison. On the other hand, an official in one of the 'cooperatives,' who preferred not to be named, said: 'Cooperatives operate according to principles that enable them to maintain the stability of commodity prices and market competitiveness. It does not make sense for their prices to be higher than other competing commercial retail outlets, otherwise their sales will drop, which contradicts the reality that indicates a rise in their sales consecutively over the past years, which confirms their competitiveness and lower prices, judging by the growing demand for them from consumers, in general or from members.' He added: 'It is necessary to conduct a comprehensive comparison of goods, not individual items, between 'cooperatives' and other commercial retail outlets, to become clear about the extent of the competitiveness of 'cooperatives' prices in general.' He noted that 'cooperatives' are also distinguished by launching extensive discount campaigns that are not limited to luxury items, but include consumer goods and essential foodstuffs. He continued: 'Cooperatives operate in a competitive manner that allows them to increase sales and profits, and at the same time, they do not neglect their societal role in cooperation with various charitable and social organizations or by providing goods and competitive offers that contribute to alleviating the financial burden on consumers through periodic campaigns or during famous shopping seasons, such as Ramadan.' The Social Responsibility of 'Cooperatives'. Retail trade affairs expert Ibrahim Al-Bahr told 'Al Ittihad': 'The social responsibility of 'cooperatives' obliges them to offer suitable prices to consumers, not just market competitiveness to increase profits, especially as 'cooperatives' have a special nature different from traditional profit-making entities in the retail trade sector.' He added: 'The significant increase in companies operating in the retail trade sector recently will clearly determine in the upcoming periods the outlets that offer suitable prices and support their expansion and sales at greater rates.' An Official in a 'Cooperative': Discounts are Available Depending on the 'Branch, Season, and Supplier'. An official in one of the cooperatives stated: 'The policy of the 'cooperative' focuses on offering goods with the highest demand in the form of discounts, whether they are food or non-food items.' He added: 'Cooperatives offer goods of their own production, including food and non-food items, which are considered among the most high-quality, and their prices are cheaper than other brands.' He noted that 'cooperatives' strive to sell several brands of the same item to cater to different consumers' tastes, and the prices of these goods vary, and the consumer is free to choose what suits them. The official stressed that 'cooperatives' are distinguished by offering local products, especially vegetables and fruits directly from local farms to consumers at good prices and high quality.' He pointed out that discounts on various goods, including meat and poultry, vegetables and fruits, as well as some essential and non-essential foodstuffs, are available depending on the branch, and in some times of the year, there may be no discounts on some goods, such as vegetables and fruits, depending on the season, country of origin, and shipping costs, just like other retail outlets. He said: 'The percentages of discounts are not fixed on many goods, but usually vary, rising and falling depending on the agreement with the supplier, supply conditions, and the prices of these goods in the country of origin.' Cooperative Officials: It is Necessary to Conduct a Comprehensive Comparison of Goods, Not Individual Items, Between 'Cooperatives' and Other Outlets, to Become Clear About the Extent of the Competitiveness of 'Cooperatives' Prices. 'Cooperatives' Operate in a Competitive Manner that Allows Them to Increase Sales and Profits, and at the Same Time, They Do Not Neglect Their Societal Role.
UAE Consumers Criticize High Prices in Cooperatives
Consumers in the UAE have raised concerns about high prices on goods in cooperatives, which they believe should be lower than in commercial stores due to their societal role. Cooperative officials deny these allegations, stating their prices are competitive and requiring a comprehensive comparison of shopping baskets.