Plans to scrap a discount scheme that gives huge reductions on weekly grocery bills have been labelled “premature” and “a complete surprise” — by the supermarkets providing the popular cash-saving service.

Last December three of the Island’s grocery chains — Lindo’s, MarketPlace and Supermart — agreed to give a ten percent discount to Wednesday shoppers who pay cash for their groceries. The initiative was introduced after the stores were approached by Government.

Last week Home Affairs Minister Michael Fahy announced that the programme would be cancelled at the end of the year after supermarkets complained it was “unsustainable”.

“The success of the initiative far exceeded the projected usage anticipated by the participating grocers, which have taken a significant revenue loss over that which was projected,” Minister Fahy told Senators last Wednesday.

“The grocers have indicated that this initiative as it presently stands cannot be sustained after November 30.”

But yesterday managers from two of the chains said Government had acted prematurely in ditching the service — and that the decision had been made without consultation.

“I didn’t know anything about it until I read it in the newspaper — I didn’t understand what was going on, it was a complete surprise,” Giorgio Zanol, co-owner of the Lindo’s chain of supermarkets, said.

“I don’t know why the Government made this announcement. Certainly Lindo’s has never complained about the discount.

“We are here to help people. Did Supermart or MarketPlace complain about it? I do not know — I am completely in the dark about it. I don’t understand what is going on.”

That view was echoed by MarketPlace General Manager Gary Shuman, who also denied that his store had raised concerns with Government about the project.

“We did do some projections last year when we first started talking about the idea,” Mr Shuman said. “Yes, it’s been hard for us, but we knew it would be.

“But the point is, we are only six months into this scheme and while it’s hurting the bottom line, I think we should wait until the end of the year before making a final decision. Any decision before then is completely premature.

“The first I knew about it being cancelled was when I read about it in the newspaper last week.

“That was the first I heard about it. I started wondering if it was our competitors who had complained about the discount, but it certainly wasn’t us. I think this is a case of putting the cart before the horse. It’s too early to say whether it should be cancelled.”

Chamber of Commerce President Kristi Grayston said that, according to research, the scheme had altered shopping habits which had hit stores hard.

But she also questioned why Government had made the announcement only six months into the programme.

“Grocery store profit margins are very small and I think the stores have played their part in trying to help people,” Ms Grayston said.

I think it is a very generous offer, but at the same time, I don’t know why Government made the announcement when it did.”

The Ministry of Home Affairs did not respond to questions from The Royal Gazette by press time last night, but a spokesman did confirm that Ministry officials will be meeting with supermarket bosses tomorrow.