Several clans of Chinese families run the handful of department stores and supermarkets in the country. However, some have not been faring well in recent years due to the high number of Bruneians crossing the borders to shop. The number of Bruneian residents crossing to the Eastern Malaysian towns of Miri, Limbang, and Labuan to shop totals about 1.8 million, which is more than five times the Brunei population. The estimated total outflow of monies to these neighboring Malaysian states by land and sea in 2000 was about B$426 million (Anaman and Ismail 2002).
With the high shopping expenditures in the neighboring states, small retailers and supermarkets in the country are finding it hard to maintain their businesses. This is evident from the low rental costs and the many unoccupied shop lots in newly built commercial areas. Furthermore, local salary earners’ overcommitment to easily available bank loans, the current car-buying spree, and the departure of many immigrant workers have also contributed to the current low sales of the supermarkets in the country (Borneo Bulletin 2002a).
A popular trend in the retail business is the “$1.99 shop.” This form of business strategy has been successful in catching the attention of consumers in the market; all items in these retail outlets cost only B$1.99, varieties of products are available and they are of relatively acceptable quality. However, other retailers began to copy this marketing concept, and many of these outlets began proliferating in the country. Competition became intense between these shops, and soon, some outlets began offering products at B$1.50, B$1.00, and then B$0.80. It appears that what seemed like a good marketing idea is eventually slowing down, with the recent closure of the first
and largest “$1.99 shop” in the country.
