Cuban private grocery stores thrive but only a few people can afford them

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Cuban private grocery stores have seen a notable rise in recent months, filling a void in a country grappling with shortages of essential supplies. These small retail shops, often referred to as “mipymes,” have become a lifeline for many Cubans seeking products not readily available elsewhere. The government’s decision to allow the establishment of these enterprises in 2021 aimed to address economic challenges and stimulate local production. While various businesses have emerged, it’s the small retail stores like the one in El Vedado that have proliferated the fastest.

Despite their growing presence and the variety of goods they offer, affordability remains a significant concern. Even professionals like doctors and teachers, who earn approximately 7,000 Cuban pesos per month (roughly $28 in the parallel market), find the prices at these stores beyond their means. For instance, a kilogram of powdered milk from the Czech Republic costs 2,000 Cuban pesos (about $8), and a jar of Spanish mayonnaise is priced at $4. Imported items like U.S. chicken and Nutella are also available, but they come with steep price tags, with a bottle of bubbly Spanish wine fetching $6.

The customer base of these small shops primarily includes Cuban families who receive remittances from abroad, tourism industry workers, diplomats, employees of other small- and medium-sized businesses, artists, and high-performance athletes. For many, shopping at mipymes represents a luxury due to the high prices. Remittances from relatives living abroad often play a critical role in enabling some Cubans to access these stores.

The products offered in these stores are typically imported directly by the entrepreneurs through state-run import agencies. This approach has not only facilitated the growth of small stores but has also given rise to larger, better-stocked establishments like the “Cuban Costco,” which caters to car owners and boasts a wide range of imported goods.

Cuba’s retail market has long been limited, with the communist state controlling most retail sales, imports, and exports. Ration books that allow limited purchases of basic necessities like rice, beans, eggs, and sugar at heavily subsidized prices remain a fundamental part of the Cuban model. However, the emergence of private stores like mipymes and larger private bodegas marks a shift toward a more diverse retail landscape, where payments can be made in Cuban pesos.

While Cuba remains a socialist country with its core ideology intact, the economic challenges it faces have led to the legalization of small- and medium-sized private enterprises. These businesses face hurdles in a landscape historically dominated by state control, but they represent a unique opportunity for economic growth and diversification within the country.

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Source: AP’s coverage of Latin America and the Caribbean

Frequently Asked Questions (FAQs) about Cuban Private Grocery Stores

More about Cuban Private Grocery Stores

• Cuban Private Grocery Stores: An Emerging Trend
• Cuban Government’s Initiatives in 2021
• Role of Remittances in Cuba’s Economy
• Challenges and Opportunities for Private Enterprises in Cuba