Wednesday, September 23, 2015

Offers hunting increases gaps in gondola

The worst crisis ever faced by retailers over the last decade forced the shops to improve promotions to try to attract customers, and a negative reflexes that begins to appear now. There is a larger lack of products in supermarkets this year, and this is, in part, because there is greater demand for goods on offer in pace above the foreseen in certain categories. With high unemployment and falling income, hunting for promotions grows, which ends up leading to an increase in the number of empty spaces in the gondolas.
In addition, retailers say that renegotiations fiercest with suppliers, in search of better business conditions, end up leading to failures in the delivery of certain products. Purchase forecast errors on the part of own retail-in an attempt to reduce to the maximum the stock-also explain the problem.
A network of pharmacies account that regional carriers face problems to meet deadlines and end up affecting the supply of medium-sized shops. And there are carriers that have taken longer because they hold the trucks, hoping to make them fuller.
For a food retailer, the sector could be feeling the effect of a typical behavior of high inflation period: "consumers see the offer and is afraid that the price go up soon. Then, ends up taking more home products. If the replacement at the store didn't happen in smaller period, will be short of product in the gondola. "
Survey conducted by Agentrics consulting, in partnership with Nielsen, shows that the index, which measures lack of goods on the shelves, was 12.6% in July. In June stood at 9.7%. The percentage of 12.6% is above the average for the second quarter, when the rate was 11.1%. That means the store stopped selling about $ 12 each $ 100 billed.
The Agentrics began lifting at the end of 2014, so there is no comparable data with July last year. But other research, São Paulo supermarket Association, shows that in mid-2015, this index was at 8.5%. The average rate of rupture in food retail in the country last year reached an average of 8%, according to research from Nielsen, made to the Brazilian Association of Supermarkets (Open).
Survey with 2,000 consumers, made in June by the company complain here, showed that almost 77% of Brazilians have not found any product sought in supermarkets in recent purchases, including merchandise offerings. In the area of food and drinks, this rate was 58%.
Sharp drop in retail this year, which occurred abruptly for some retailers, and the difficulty to predict, so correct, future demand, end up making this more complex scenario for retail. May be harder hit in the estimates, despite the range of internal systems and controls. If the store err in the purchase, will pay more for the mistake with the increase in the cost of capital this year.
"Scared of the retraction in sales, retailers began to worry more with excess inventory and declining applications for industry, and one of the reflections of this behavior is the lack of products on the shelves," says the Director of retail and industry relationship NeoGrid, Robson Munhoz. "The hang-up if you reduce inventory in stores may be costing the sale to the retailer," agrees Edward Land, President of the Brazilian society of retail and consumption (SBVC).
Survey presented some years ago by the American professor of marketing Thomas Green, in the event of Open, showed that the break in the American retail led to loss of earnings per share of $ 0,012, whereas the average profit per share at retail was at $ 0.25. Another survey of Green shows that almost half (47%) of the problems of lack of items in stores reflect demand projections errors or failures in the ordering process the industry (late on purpose to try to obtain better trade conditions, for example).
To Earth, there's some sort of delay in updating inventory data that hinders the sector today. "Often, a loss that has a product, because you ruined or broke, did not enter as low in stock immediately. The store just to see it when you do the inventory. There she thinks she has the product in stock and does the replacement ". According to him, the increase in the number of minimarkets can also press the rate of breakages. "Do replacements in these shops is much more complex because many times the store doesn't even have stock area. The risk of lack of product is much greater. "
Valor Economico News Item translated automatically
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