Cuban retailing: from a centrally planned to a mixed dual system

Abstract

Purpose

Many studies have analyzed the retail and distribution systems in transitional economies, either from a general perspective or by analyzing specific countries. However, only a few, if any, have analyzed the situation and changes taking place in the Cuban market. The purpose of this paper is to provide a current overview of Cuban wholesaling distribution and retailing for consumer products. It examines the challenges that are taking place in the wholesale and retail distribution system in the country and describes the sharp contrast between the state of retailing in Cuba before and after the collapse of the Soviet Union.

Design/methodology/approach

The research is principally exploratory, based on fieldwork and in‐depth interviews carried out in Cuba during the first semester of 2003.

Findings

The analysis presents a fast‐paced evolution process in the Cuban distribution system. Cuban retail durable and non‐durable consumer goods market presents two different distribution structures: one in Cuban pesos, formed by the traditional socialist retail system, and a growing second structure formed by the new stores and wholesalers operating in US dollars. The dollar market encompasses many semi‐autonomous government‐owned and operated companies, vertically integrated, with store sales totaling over $1.4 billion in 2002.

Originality/value

The paper concludes by discussing the current and future opportunities for brand manufacturers and exporters, and the close relationship between Cuban retailing and tourism.

Citation

Cerviño, J. and Bonache, J. (2005), "Cuban retailing: from a centrally planned to a mixed dual system", International Journal of Retail & Distribution Management, Vol. 33 No. 1, pp. 79-94. https://doi.org/10.1108/09590550510577147