Georgian importers reduced the amount of the available stocks of goods in warehouses by 30% – it also concerns food products.
Importers say about a possible rise in price of products, but cannot specify how much the prices will increase. Businessmen also fear that a decline in inventories may lead to a shortage of some types of products, and this, along with the devaluation of the lari, could lead to price hikes. These are only assumptions, but they demonstrate the problems the importers are facing due to fluctuations in the national currency. LLC Barn imports flour from Russia. According to the company’s Director Koba Dokaidze, the tendency to reduce stocks lasted all summer, and the situation has not improved.
“It’s hard to find a sector of the economy, which is not suffering similar problems, particularly among importers. The situation is so uncontrollable that it is impossible to predict anything. Seasonal factors might play its role in reducing reserves, but the main reason is still the devaluation of the lari. Due to the decline in purchasing power, sales fell by at least 20%, and this trend will continue in the future. Demand has reduced even for the flour despite the fact that it is a product of daily consumption. This shows the seriousness of the situation in the country ,”- Director of the company notes.
A sugar importing company Gepak reduced stocks of products by 30%. According to Luka Khizanishvili, the main reason for this is the devaluation of the national currency, and confirms that if the situation does not improve, the business will face serious losses.
“We’ve seriously reduced an import that in the current reality is inevitable. Because of the dollar rate, we have reduced stocks of products by 30%. This is a very bad trend which creates a problem to the business. When we look at the actions of our government, we have no hope that the situation will improve. If the situation does not improve, then we cannot continue to work. Now we do not even think about any profits, we have to protect themselves against losses, “- he explains.
Technoboom company which owns a network of consumer electronics stores also talks about reduced stocks of products. In the words of Anzor Kokoladze, stocks reduction is part of the costs optimization. This is reflected, for example, in a more precise and detailed calculation of stocks of goods, as well as reduction of their number. If earlier we had a stock of goods for 2.5 months, now – only for 1.5,” Kokoladze explains.