Cuba neighborhood market retail transformation

Authorities in Santiago de Cuba and across the country have begun implementing the ‘Mercados de Barrio’ (Neighborhood Markets) model to transform retail access to basic services. Under Resolution 16/2026 from the Ministry of Domestic Trade, the initiative aims to modernize the existing network of warehouses, butcher shops, and markets to bring essential food, hygiene, and cleaning products closer to the population.

To encourage participation from various entities—including state enterprises, cooperatives, and MSMEs (mipymes)—the government is offering fiscal incentives. These include property lease exemptions for the first two years and a 5% reduction in sales tax for non-state actors. The first 24 neighborhood markets have been launched, with officials stating they prioritize essential goods at prices between 10% and 15% lower than other retailers.

Despite the rollout of these markets to mitigate shortages, food prices in Cuba remain subject to significant volatility and regional disparities. While some markets have reported decreases in the cost of oil, sugar, and beans, others have seen price increases for staples such as meat and eggs.