FEATURED ARTICLE
Buying power or selling power ?
Lately , especially during the Covid-19 pandemic , we often hear that retail businesses are experiencing difficulties due to declining of people buying power . Is this opinion correct ?
Maybe , because so many media exposed this on the news or because so many times we heard about this statement then finally businessmen believe and then do nothing because people ’ s buying power is declining .
As a consultant who is advising many retailers , I am one of those who do not believe in this buying power thing . There are at least 2 reasons why retailers sales have decreased or cannot reach their target .
First , the weakness of the Merchandising Division carrying out its role in sourcing and buying the right merchandise , in the right place , at the right time , in the right quantity , and at the right price . What we know as the 5 Rights in Merchandising . The weaknesses of the Merchandising Division , which I often refer to as the heart of the retail company starting from placing an incompetent person of being a merchandiser to the lack of focus of the business owner in ensuring that this very important division carries out its duties and responsibilities correctly .
Christian Guswai
Consultant & Trainer from Grow & Prosper Retail Consulting Author of Retail Excellence Series Books
Second , the factor that caused the decline in sales was due to a large number of goods that were needed by customers but unable to be supplied by suppliers or distributors . And the root of the problem lies with the manufacturer . I still do not understand what is the real problem from the supplier ’ s side as I am not on their side . I just wonder if suppliers and manufacturers are not ready to face the demand which is still good even in this pandemic situation . My data said in the fast-moving items category retailers face a shortage of goods that reach 17-20 % of the category which are most needed by consumers and 20-30 % in the group of goods that are less needed which we call the slow-moving item ’ s category .
28 27TH NATIONAL RETAIL CONFERENCE & STORES ASIA EXPO 2021 AUGUST 12-13 , 2021