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Angola: Discounters enter into the territories monopolized by the open market

It is increasingly frequent to see in the neighborhoods of Luanda proximity discount stores, which in this phase of the national economy seek to gain ground and market in zones where the open market is the king of low prices.

Discount price stores like Arreiou and Bem Me want (both belong to Mega Cash & Carry) very similar concepts provide more quality and a fixed variety of products.

The Arreiou, whose name was chosen because it means very low prices, presents itself as the first Hard Discount in Angola, which is a very low-priced operation for food products, by combining simple stores and own private label brands.

By the way, it is with this promise of low prices that customers go to these stores, but in fact, then they come across prices above those that the open market charge them, which in some cases ranges from 50 kz to 300 kz more.

"The formal store is better because if the product has a problem we can still return or exchange for another," admits Baptista Escrácia, while shopping at the Arreiou, in the low of Luanda.

In a round of expansion it was possible to find this price difference. A 1.2 kg rijail chicken cost 1,668 kz in a formal store, while on the street it cost 618 kz less. Already a liter of full oil cost 1,490 kz in a store, 440 kz than on the street. That's why Amadeu Makala, another client in the Arreiou store said that what attracts him to a service is his legality, that is, "it is localizable and here we can demand our rights without fear." This client said he has had unpleasant situations with market employees, because they do not feel obligated to provide a quality service.

But price variation occurs even in stores of the same chain. If in one Arreiou store the toilet paper packs costs 290 kz, in another store it costs 250 kz, a difference of 40 kz.

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