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