Selling low quality products at cheaper rates by these vendors has turned out to be a big setback for shop owners who claim that they incur losses amounting to millions of riyals as a result. Many shop owners complain that the concerned authorities have not taken adequate measures and fail to carry out effective periodic inspections to put an end to this illegal practice.
On a tour to a popular commercial market in Aziziya district, Arab News noticed a huge presence of street vendors, some of them even blocking entrance to shops in the area. Muhammad Ali, an elderly shop owner, said that the area has been bustling with street vendors for a long time.
“They are mainly non-Arab African women and migrants from erstwhile Burma, Bangladesh and Indonesia. Most of them are violators of residence regulations. Earlier, these vendors used to concentrate on the central area of the city surrounding the Grand Mosque to take advantage of the huge presence of pilgrims, especially during the peak Haj and Umrah seasons,” he said.
However, a large number of them had to leave the Grand Mosque area due to ongoing construction projects in that part of the city, said Ali.
He added that many others were forced out after inspectors combating undesirable practices intensified raids in the area. “Subsequently, these vendors moved to other localities in pursuit of their thriving trade. They are now largely visible at most commercial markets in other parts of the holy city, especially in Aziziya. These illegal traders squat in front of major commercial showrooms and retail outlets and display their products for sale. They lure a major segment of customers coming to our shops,” he said, while noting that most shops incur losses due to this growing phenomenon.
Qassim Hussein, another shop owner, told Arab News that he has to pay an annual rent of SR160,000 for his showroom, in addition to other operational expenses, including electricity bills, decor and wages.
“The street vendors need not meet any such expenses. These vendors display various types of products on the pavements in front of our showrooms. They can lure shoppers by offering products at cheaper rates. Most shoppers are Haj and Umrah pilgrims. They prefer to buy these products because of their low prices compared with prices in the showrooms,” he said, adding that this phenomenon has resulted in them incurring losses amounting to millions of riyals.
While describing the potential threat posed to owners of showrooms at Aziziya market, Qassim Hussein cited an example.
“Suppose a street vendor buys a low quality pillowcase for SR9 and sells it for SR10. He gets a profit of SR1 as he has no expenses. On the other hand, shop owners display the same product with a higher price tag because they have expenses such as rents and wages. They may also be displaying products of better quality. The shoppers often cannot differentiate between the two, and so it is natural that they buy from the street vendor at cheaper rates,” he said.
Hussein Qaed, salesman at another shop, said that these women squat on the pavements in front of their shops and thus obstruct the way of shoppers to our outlets. “These vendors become the first sales point for the shoppers. They enter the shops after acquainting with prices of products displayed outside. When they see similar products at much higher rates inside the showrooms, they go out to buy from the street vendors,” he pointed out.
Mohsen Hussein, another salesman, said the inspection raids of squads from the municipality and other concerned agencies are virtually ineffective in tackling these illegal street vendors. “Despite the seasonal raids and monitoring by the concerned agencies, these vendors are at large and they can be seen from the early morning until late night at major markets and shopping areas in the holy city,” he said.
Hussein said a number of shop owners in the city are now in a desperate condition. “Without knowing how to meet the operational costs, including rent, electricity charge and salary of workers, owners of many showrooms are seriously considering shutting down their showrooms to avoid further losses,” he added.
