In recent months, small grocery stores have been popping up around Cuba, offering a treasure trove of supplies in a country that is short of them. These stores, known as “mipymes,” are small- and medium-size enterprises that were first allowed to open in 2021 and are helping to strengthen local production and stimulate the Cuban economy.
Located in residential neighborhoods, these stores offer a variety of products, from cooking oil and tomato sauce to Hershey’s cocoa powder, Nutella, shampoo, cookies, and jam. While the selection may seem impressive, the prices are far from affordable, even for a doctor or teacher who make about 7,000 Cuban pesos a month (about $28 in the parallel market). For example, one kilo (2.2 pounds) of powdered milk from the Czech Republic costs 2,000 Cuban pesos (about $8). A jar of Spanish mayonnaise goes for $4. Two and a half kilos (about 5 pounds) of chicken imported from the United States cost $8.
The customers who are able to use these small shops include Cuban families who receive remittances from abroad, tourism workers, diplomats, employees of other small- and medium-size businesses, artists, and high-performance athletes. Ania Espinosa, a state employee, said as she left one store in Havana, “This is a luxury. There are people who don’t earn enough money to shop at a mipyme, because everything is very expensive.”
Most of the products found in these stores are imported directly by the entrepreneurs through state-run import agencies, a system that has also opened the door to the emergence of bigger, better-stocked stores. In recent weeks, a private store, accessible only to those who own a car, opened on the outskirts of Havana, featuring giant shelves full of imported products such as Tide detergent, M&M’s candy and Goya brand black beans. This store, which is at least 10 times larger than the store in Vedado, has come to be known as the “Cuban Costco.”
Cuba’s retail market has been very limited, and for decades the communist state held a monopoly on most forms of retail sales, import and export, under the argument that it is necessary to distribute products equitably. The ration books that allow Cubans to buy small quantities of basic goods like rice, beans, eggs and sugar each month for payment equivalent to a few U.S. cents continue to be the basis of the model, allowing families to subsist for about 15 days. The rest of their diet must be acquired through other outlets, including state-owned stores and now the mipymes.
The emergence of these small, private businesses is a welcome development for the Cuban economy. It is providing much-needed economic stimulus and allowing for greater variety and access to goods. It is also giving entrepreneurs the opportunity to make a living and providing customers with more options when it comes to shopping.
The challenge now is for these businesses to be successful in a difficult economic environment. Pedro Freyre, an analyst with the Florida-based Akerman Consulting and professor at Miami Law School, said, “For the first time in 60 years, small- and medium-sized private corporations are now authorized by law. Now the challenge is for them to prosper in a very arid landscape for private initiative.”
The small grocery stores that have been popping up around Cuba are a testament to the resilience and determination of the Cuban people. Despite the challenging economic environment, these businesses are providing much-needed economic stimulus and giving entrepreneurs the opportunity to make a living. They are also giving customers more options when it comes to shopping and providing a much-needed boost to the Cuban economy.
