Retail cut slots to adjust to the crisis

The crisis in the economy led to a dramatic setting on the job than in naked-number of stores between the larger retailers. This indicates, according to consultants, companies are taking advantage of the moment to seek an increase in worker productivity. The intention of the company is to be leaner when the consumer market to grow back. Of the 300 largest companies in the sector, 88 have reduced the number of employees in the last year about 2014 and a smaller group, composed of 31 retailers, decreased the total number of stores, the Brazilian society of Retail ranking (SBVC). Despite the contraction made by these two groups, the SBVC found that, together, the 245 companies, which have reported personal data and stores in the 2014 and 2015 rankings, increased an average of 5.85% the number of outlets in the period and had an additional, minor, of 1.35%, on average, the total employees. Edward Land, SBVC President, said that despite the cuts made by the two groups – who resigned and the closed shop –, on average there was an expansion of employment and of points of sale among the largest retailers in the country, 245 with a total increase of shops compared to the growth in the number of employees. He explained that this average expansion among the 245 companies was supported by pharmacies and supermarkets, two threads that are more resistant to the crisis because they sell essential products. "More than 50% of the stores open in 2015 are pharmacies." Earth considered, however, that the data revealed by the ranking of that there''s been a slight expansion in the balance of stores in 2015 is not opposed to recent study of Confederates-ING National Commerce (CNC) which showed that stores 99000 crashed in 2015. He argued that the study of CNC includes all retail companies, especially small and medium-sized, that were most affected by the crisis. Already the SBVC ranking evaluates the 300 major retailers in revenues that, theoretically to be bigger, were less affected by the recession. Legacy. For Alberto Serrentino, Managing Director of retail consulting Varese, the increase in productivity in the retail companies for job adjustment account and closing loss-making stores is the positive legacy of the crisis will be more visible when the economy grows back. He disagrees with the realization that the retailer is kicking. "It''s the opposite: is occurring is a leap in productivity." Currently, the big retailers are dabbing costs, cutting staff and closing loss-making stores, hardly would do if the market was favorable, said Serrentino. That said, it''s going to make healthier companies. of the. "It''s the opposite: is occurring is a leap in productivity." Currently, the big retailers are dabbing costs, cutting staff and closing loss-making stores, hardly would do if the market was favorable, said Serrentino. That said, it''s going to make healthier companies. Eletromóveis. The personal adjustment that occurred in 2015 between the 88 large companies resulted in layoffs, 58300 SBVC''s accounts. Affected by the squeeze on credit, consumer electronics and furniture stores were the ones cut. Together they dropped 18,143 workers. Only Via retail, owner of flags and PontoFrio, Casas Bahia accounted for more than 50% of the cut. The company said, by way of note, that "ended the operation of some loss-making stores that caused the reduction of the running rivers in about 11000 positions last year. This movement, second Earth, resulted in increased productivity. Sale porfuncionário grew up 5.82% in 2015, although the company''s revenue has fallen about 25% deducted from inflation. The Magazine Luiza, another major retailer of furniture and appliances, has expanded by nearly 7% sales per employee, according to calculations of the SBVC. The network President Frederick Trajan demitiuem, 2015 and that chose not to reinstate the employee. With that, the network has reduced in the number of employees 3500. Although 2015 have been difficult, with almost 20% real drop in sales, the Magazine did not close shop. "Open a store is a long-term investment. You can''t close a store in first crisis "said Tarle.
Online store and crisis affect employment
In addition to the cuts made by the major networks to increase productivity of running rivers and compensate for the fall in sales because of the recession, the retail job is threatened by technological evolution. Ricardo Patah, President of the Union of business people of Sao Paulo, said that the progress of e-commerce and sales by phone can complicate a scenario which is unfavorable to employment in the sector due to the crisis. Between January and July, were approved in the city of São Paulo 71,212 workers layoffs in trade. Is a naked-mere just 1.5% less than in the same period in 2015. Last year the total was full of 117,199 approvals. A resignation is approved, that is, the cancellation of the contract of work passes by the syndicate, when the employee is more than a year in the job. "We now have two problems that concern us: crisis and internet sales," said the President of the Union. The advancement of the internet is clear, for example, the results of Magazine Luiza, retail giant of household appliances and millstone-ABLES. Online sales accounted for almost a quarter of the total turnover of the company in the second quarter of 2016, which was 2.56 billion R$. Frederico Trajano, President of the retailer, said that the project of the company is to become a digital store with physical sales points. To gain productivity, he said that the plan is to equip with a smartphone each salesperson within the physical stores so it can perform all operations and reduce the time in the sales process, from low in stock payment. The time will be reduced from 45 to 5 minutes. "Let''s turn 2000 boxes in sellers." Asked whether the project should result in layoffs, Trajano said that will "need more people able to generate revenue".