Bakers cut bread prices on competition from supermarket bakeries

By Gerald Andae

Bakers have sliced bread prices by Sh5 on the stiff competition by supermarket in-store bakeries, hurting their profit margins in the wake of the prevailing high global cost of wheat.

The price of bread in the in-store bakeries has been cheaper by an average Sh5 since April when rival bakers raised their prices in a fresh attempt to pass the additional cost in the price of wheat to consumers.

The in-store bakeries did not adjust their prices -- titling the scale as price-sensitive consumers opted for the cheaper products. Spooked by the consumer shift, bakers have now lowered their prices to keep up with the competition.

This article was originally published by the Nation. [Photo: Nation Media Group]