Tuesday, May 05, 2015

Supermarkets if reinvent to maintain profitable operation

The change in consumer habits and the current moment of the economy have made the supermarket to review its operations. Expansion of assortment offered to the customer and improving operational productivity are the keywords for that networks don't lose profitability.
The need for upgrading the economic moment adds to the prospect of zero growth for the year, designed by São Paulo supermarket Association (Apas). "The expectation is of nominal growth of 8.5%, but we will have the same 8.5 percent inflation by pushing the sector. With that growth will be equal to zero, "said the President of Apas, Shivani. For him, even with the economic situation, the friendly supermarket nothing of Sao Paulo maintain the "optimism" for 2015. "We work with the complicated scenario since 2014 and supermarkets had real growth of 2.2% and 1.3% increase in the number of stores. We try to be positivists, is not a lost year, "he said.
Who also showed more caution in the indicators of growth was the Brazilian supermarket Association (Abras). According to the President, Fernando Yamada, the projection of 2 percent reported earlier this year by the Association must be revised to 1%. "Last year our expectation was to grow 2.5% and we close at 1.8%. Grow more than 1% compared to a gross domestic product (GDP) negative, shows the importance of the sector in the Brazilian economy. "
Today, São Paulo accounts for nearly 30% of the supermarket sector and last year grossed R $ 86.8 billion-based on 16.5 thousand stores. When extended to Brazil in 2014 the supermarket chains have aggregate revenues of R $ 295 billion in the Country. "We have to improve infrastructure issues in order to maintain investment in the sector," Chang argued.
Official data show that the Brazilian Government aporta 17.9% of their proceeds to infrastructure, the remaining percentage is in the "public machine costing", stressed the President of Apas.
Initiatives
During the industry's disclosure in the 31st Congress and trade show promoted by paulista entity-which takes place in Sao Paulo until May 7-segment experts listed a number of measures that the supermarket owners have adopted to keep profitability at a complex scenario.
Among them, is the productivity gain with the workmanship at the point of sale. "In the capital had a gain of $ 5.63 in turnover per employee," said Shivani, Paulista Association.
Fernando already Yamada, the Open, said that entities, together, have tried to improve the negotiation with suppliers, as well as credit card companies. "We are trying to reduce the time for receipt of payments made on credit cards and cards of benefits," said supermarket. In the opinion of the Director of the Vecchi Ancona-strategic intelligence, Anna Vecchi, besides improving the relationship with the industry, the supermarket owners should be alert to product prices. "They need to do the stock turn and even the upper classes of society take advantage of promotions," explained the expert by mentioning the example of Sugarloaf, which has made several deals on the drinks industry. "This shows that no one is immune to the crisis and they are dumping stocks because sales have fallen."
Supermarket networks to remain profitable this year, the expert claimed to be necessary to check the margins of categories sold in stores. "By analyzing it, you can map the items with low average ticket and try to leverage sales," said Ana, who completed: "Actions in points of sale that talk to the different audiences also help expand the volume of sales in stores".
Working capital
Have working capital to maintain the financial health of companies also is among the measures adopted by entrepreneurs to tackle the slowdown in sales. According to Yamada, the prospect is of a fall in the opening of new stores. "Opening stores is expensive and not everyone has the money to invest," he said.
To try to help the networks who want to keep the expansion, the President of Open stated that the entity has talked with the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) to try to extend lines of credit to the sector. "The BNDES financing help of equipment, but they represent only 50% of the expenses in a store. The construction of the shops consumes the other 50%. "
Another point highlighted by the experts was the biggest concern with the new Brazilian consumption habits. "As well as our suppliers, we have to be more attentive to consumer behavior, even more than he has gone less to the point of sale," emphasized Yamada.
Change of habit
Research from Nielsen and Kantar Worldpanel: consumer pointed out that the frequency of purchases has fallen. In the last five years the Brazilian homes decreased seven visits to POV. In sum, this represents 350 million trips within the year. "This shows that consumers are rationing the purchase. But even with the tight pocket, he keeps his preference in the premium category, "said commercial Director of Kantar, Christine Pereira. The research identified that 61% of consumers are with the limited budget and research before buying; and to be able to keep the food shopping basket intact, they cut other costs. "13% no longer eat away from home, all so that the cart keep full", he concluded.
DCI News Item translated automatically
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