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Latin America Investment News on Viva Tropical

Everything is Half Price! Ticos Flock to Paso Canoas to Pay Panama Prices.

Article Summary:

Business at the border town of Paso Canoas is booming for Panamanian retailers, where Costa Rican shoppers find products marked at 50% off or more. Apart from competition for low prices, Ticos also enjoy lower fuel prices, up to a $1 at times. The bargains to be found in Panama have caused lay-offs and closures at businesses along Costa Rica’s border who have banned together and are seeking a special program for monitoring and controlling products.

Photo Credit: Revista Summa

Original Article Text From Revista Summa via Google Translate :

Low prices on Panama Trade Drown the Southern Tico

The low prices offered by Panamanian businesses not only in clothing, tennis and appliances, but now also in food and fuel, and cause layoffs at businesses in the Costa Rican side of the border.

In Ciudad Neily, for example, some supermarkets have lowered their staff by 30% .

The situation deteriorated a little over a year, when a large business opened in the Gaza border, on the Panamanian side, called City Mall

It was the first to feature a section on groceries, meats, vegetables and fruits, apart from the traditional line of clothes, shoes, appliances and more. Also, put inside a McDonald’s restaurant, the first in the area.

Before this situation, the traditional store was remodeled and enlarged Jerusalem to make way for the Jerusalem Mall

This also opened the sale of food and set up a Burger King and a Subway in its building.

By way of Panama, the two trade offer very competitive prices on food, including products manufactured in Costa Rica, said Paul Valle, president of the Civic Committee of Paso Canoas.

Thus, in the City Mall a box of skim Dos Pinos milk is worth $ 1.35 (about ¢ 688 to an exchange rate of ¢ 510), while in the supermarket Loaiza in Ciudad Neily, sold at U.S. $ 1.53 (¢ 781).

A light tuna in water Sardimar offers consumers at $ 1.25 (637.50 ¢) in Jerusalem Market, while Loaiza is offered at U.S. $ 3.4 (¢ 1729), according to prices posted on the shelf.

A cream cheese Dos Pinos is worth $ 1.69 (¢ 862) in City Mall, U.S. $ 1.55 (790.50 ¢) in Jerusalem and U.S. $ 2.3 (1179 ¢) on Loaiza.

The fuel price is another incentive for the Ticos prefer to go shopping across the border. In this sector, there are three stations where Panamanian plus a gallon of gas worth $ 3.78 (about ¢ 1928), Costa Rica lie in the price is U.S. $ 4.7 (2427 ¢).

Big impact

The magnet border trade affects not only Paso Canoas and nearby towns such as Ciudad Neily and Cuervito but further afield as San Vito (Coto Brus), Rio Claro, Golfito, Palmar and Buenos Aires.

This was said Valle, who agreed with Murillo retailers, supermarkets The Sun, in Buenos Aires, Ronald Ruiz, hotel, cabins and hardware Romy, in Paso Canoas, Alfredo Rojas, the super El Rodeo Cuervito; Minor Loaiza Vice President of the Chamber of Commerce of the south, and Milena Wolf, Wolf South ironmonger in Ciudad Neily.

Estimated Loaiza trade, especially of food and ironmonger, sales decreased by 50% in just over a year. Apart from competition for low prices, adding that the movement of goods are for free at the border.

Rowland Espinosa, Vice Minister of Finance, said the southern border poses a very difficult problem. Therefore, he added, are conducting research and preparing a special program for monitoring and control products.

Link to Original Article:

From Revista Summa

Latin America Investment News on Viva Tropical