Retailers Show Optimism Despite Lower Sales - New Stores Planned

[Moderator_02]

Quote

Supermarket sales fall as new stores planned

Posted on April 24, 2017 in Business, Panama

Post Views: 171

 SUPERMARKET sales  in Panama have fallen 3.1%,  and the industry continues to face challenges arising from the extension of the price control program wage increases, and the opening of  new stores.

El Rey Holdings Corp., sales are down 2.7% reflected in the financial statements for the quarter that ended Dec. 31, 2016.

This business conglomerate ­ which owns supermarket chains Rey, Romero, Mr. Price and

Metro Plus convenience stores ­ says in its latest financial report that its liquidity deteriorated during that quarter, with a deficit of $78.3 million as of Dec. 31, compared with  $60.2 million on Sep. 30, 2016.

However , it notes that cash and bank deposits increased from $6 million to $17.4 million.

In the first quarter of the fiscal year 2017, the group’s net sales were reported at $161.3 million, representing a decrease of 14.8 percent ($28 million) compared to the $189.3 million in sales in  the same quarter last year.

The decrease in sales was due in large part to the change in a technology system that is part of the growth process designed by this business consortium for the coming years. The change took about eight months, and often left stores understocked.

Although the impact on sales was 14.8 percent, compared to the same period last year, “the company is confident that this new system will provide a world­class information and technology infrastructure to accompany the  future expansion of the business said a consortium report.

The consortium’s 72 stores serve an average of 4 million customers a month.

It says in the report that it will continue to work to counteract the effects of the last increase in the minimum wage, introduced in January 2016, which caused a significant increase in labor expenditures.

It also plans to open seven new stores in 2017.

 

http://www.newsroompanama.com/business/panama-4/supermarket-sales-fall-new-stores-planned

[Moderator_02]

http://www.prensa.com/in_english/Optimismo-despues-bajon-ventas_21_4741985760.html

[Keith Woolford]

Eight months to incorporate new technology (software) ? The shareholders should be indignant.

They lost a bundle because of management's incompetence, and you can guess who's going to help them recoup those missed profits  ..the consumer through higher prices.

20 minutes ago, Moderator_02 said:

The decrease in sales was due in large part to the change in a technology system that is part of the growth process designed by this business consortium for the coming years. The change took about eight months, and often left stores understocked.

 

[JohnF13]

I don't go into Rey's much anymore, just seems to me their prices have increased tremendously.  Last time I was in there were very few people.

[Keith Woolford]

Although a bit cramped, we're preferring Super Baru for the same reason, price, plus better selection and good quality meats. Spiro is a terrific hands-on grocer.

Edited April 25, 2017 by Keith Woolford

[Penny]

I checked out the new Super X-Tra store on Monday. It's way bigger than El Rey with more "hard goods" and better prices -- especially on dairy products.

It seemed to be very well stocked with lots of employees and a huge selection of almost everything.

It's located on the south side of the Pan American highway (left side while going to Price Smart).

[Hil]

A new store near the InterAmericana Hwy opened last month. We shopped there a couple of times. The name is Dorado. Turn left at the light before Price Smart by the Delta Station and head back into David. Look on the left about half way to Calle F Sur. Really clean, prices are good and meat department is super clean. It's actually a few streets behind Super X-Tra and the parking is better. I will try Super X-Tra but have to find a time when the parking lot isn't full. They are busy. Walking isn't a problem for me after parking. When I tried to visit Super X-Tra there were NO parking places and traffic was jammed up on the Interamericana and the side street with people trying to park. 

Edited April 26, 2017 by Hil