Convenience Stores Do Not Price Gouge - They Serve Their Community

TORONTO, April 1, 2020 /CNW/ - Recently Premier Doug Ford righty criticized businesses that were price gouging products at a time when people needed essential supplies the most. Through the Ministry of Consumer Services, a hotline has been set up so Ontarians can report businesses suspected of taking advantage of people by marking up products for much higher margins than usual. As responsible retailers, the 1000+ members of the Ontario Korean Businessmen's Association (OKBA) support this initiative and welcome this level of scrutiny on every retailer.

Unfortunately, since Premier Ford's public comments around price gouging, there have been several incidents where independent convenience store operators have been wrongly accused of price gouging by angry customers. Last weekend a shopper visiting Niagara Falls entered a local convenience store to purchase a beverage. Once at the cash she noticed 8oz bottles of hand sanitizer selling for $14.99 that she believed should be selling for $3.99.  This individual then went to social media to shame and ridicule the business, asking other residents to "boycott" the store and insisting that the store owner was "robbing" customers. This post garnered 6500 shares and while this individual is entitled to her own opinion, here is what she likely doesn't know:

A similar sized bottle of hand sanitizer is selling in many other places around Niagara Falls including:

• Other local convenience stores ranging in price from $12.99 to $13.99
• A leading national hardware store chain for $15.99
• An international leading online retailer for $19.99 and up.

The shopper also is also likely unaware that the cost of this item was $9.99 wholesale, and that the retailer was adding a standard margin markup for retail. Supply and demand economics are very different from price gouging.

"This individual's social media actions have resulted in the store owner receiving multiple phone calls and visits from other people hurling racist insults and derogatory comments", stated OKBA spokesman Kenny Shim. "Independent convenience store operators, like the owners she accused of price gauging, operate their business on very thin margins, and do not have the buying leverage of larger retailers. And I doubt this shopper also understands that store owners like the people she targeted typically work 16+hr days, 7 days a week to pay their bills and make a modest living." added Shim.

During these recent challenging times surrounding the COVID-19 outbreak, communities have rallied together to support one another. While many businesses have either decided to close or have been forced to close, many others have stayed open to serve the public, including your local community convenience store. Many of them, like the one in Niagara Falls, have been making free deliveries to seniors that can't leave their homes. Convenience store operators exist by providing convenience to their customers and do not gain anything by taking advantage of anyone through price gouging.

Ontarians have every right to report unscrupulous retailers who price gouge. Convenience store retailers are not part of that group.

SOURCE Ontario Korean Businessmen's Association

For media inquiries please contact: Mr. Kenny Shim, OKBA - Ontario Korean Businessmen's Association, Chief Operating Officer, 416-414-6518, [email protected]