The domestic retail industry is extremely competitive and has become heavily dependent on heavy discounts, mark-down of merchandise, frequent sales and promotions to attract shoppers. The above activity normally would mean lower profit margins but some retailers have managed to maintain merchandising mix that has resulted in healthy profits. Imported products also attract high import duties in line with the government's policy of reducing the level of non-essential luxury imports and to promote local products. There is also indirect pressure applied on retailers stocking local goods to ensure these are prominently displayed with the aim of boosting sales. Stiff competition amongst departmental stores has already forced retailers to be more competitive.
Consumers are now far more selective and price sensitive.
Retailers are beginning to find hyper-markets their major competitor due to price cutting practice. Competitiveness is now forcing the larger retailers to look at more efficient methods of retailing. Internet shopping on-line is growing. The potential is significant and could realistically double in a relatively short time. Retail space coming on stream is said to be in the region of 100,000 sq meter per annum.