Supermarket system under pressure of economic downturn

(Baonghean) -Despite continuous promotions, sales at many supermarkets still decreased by 10-15% compared to last year, not including inflation. Falling into a recession, retail systems and supermarkets are forced to downsize and reduce profits... to survive and find opportunities for development.

One weekend at Metro supermarket, even though it was a holiday, there were only a few customers. Ms. Lan - from Do Luong, currently a worker at Vinh Fiber Factory, took advantage of her shift to go to the supermarket with her friend. After an hour in the crowded supermarket, the two of them only bought a few packs of instant noodles and a 1-liter bottle of oil and went to the checkout counter. Ms. Lan shared: Our workers' salaries are only 2-3 million VND/month, so we have to calculate carefully when buying anything. Sometimes we go to the supermarket, but mainly to... look around, as a way to relax. An employee at the checkout counter said: People still buy essential goods, but the quantity is limited. Household goods, luxury items, and expensive items sell very slowly.

People hesitate when buying goods in the context of tight spending

Perhaps never before has the difficult situation caused by the economic recession been as evident as it is now. Although most supermarkets have continuously launched competitive promotions to attract consumers, purchasing power has still decreased sharply. Ms. Le Thi Le Quyen - Quality and System Management Department - Big C Vinh Supermarket said: This year, sales have decreased by about 10%, not including inflation. The first half of the year grew better due to the Tet holiday, but the number of customers has decreased sharply in the last 6 months. If in 2011, the average shopping basket was 270,000 VND/customer, this year it only reached 248,000 VND/customer. The situation is even more difficult at the Intimex or Maximax supermarket systems. A sales staff of Intimex Supermarket admitted that business is slower than in previous years. Output is slow, inventory is large, many employees are unemployed and have to find other jobs. The remaining employees have to receive a modest salary, accept to buy inventory and deduct their salary... According to Mr. Tran Viet Manh - Head of Sales Department of Maximax supermarket, the purchasing power has decreased sharply, partly due to competition between supermarket systems in the area, but more importantly, due to economic difficulties, people cut spending. This was clearly shown during the recent Mid-Autumn Festival, the amount of goods sold was small and only the popular cake segment was sold.

Not only general supermarkets, many electronics supermarkets are also in a slump, having to reduce their scale. Usually, the Christmas and New Year holidays are opportunities for agents and stores to increase sales, but they are still in a slump. The director of an electronics supermarket in Vinh City said that from mid-2011 until now, the purchasing power of electronics has decreased by 40-50%, revenue has decreased sharply while long-term lease contracts have been signed, rental prices have not decreased, and labor wages have increased. High costs, sharply reduced purchasing power, large inventories, so businesses are facing many risks. Ms. Cuc - Owner of an electronics store on Quang Trung Street complained that business is difficult, to compensate for the rental costs, she has to buy more items that she did not make before such as electric kettles, motorbike helmets, rice cookers... to sell more.

Talking to us, Mr. Nguyen Tai Dung - Deputy Director of the Department of Industry and Trade commented that in the coming time, the economic situation will be difficult to improve, and the business activities of many supermarkets may continue to face difficulties. To solve this problem, Mr. Dung said that it must start from its root cause, that is, businesses have jobs, consumers have income, and goods can be consumed. Currently, many supermarkets have also had solutions to overcome difficulties such as Maximax finding ways to reduce costs to maintain customers... to continue operating. At BigC Vinh, to increase sales, the supermarket organizes to exploit customers who buy in large quantities (wholesale). Many price stabilization programs, 2 weeks/time running promotions to diversify people's shopping needs. In addition, participating in fairs to bring Vietnamese goods to rural areas is also a way to help businesses increase sales.

Thu Huyen