The Big Challenges Faced by the Retail Industry At This Time That has been alluded to earlier, price competition has become an enhancer of the minds of retail entrepreneurs. But did you know that the current price competition is already beyond reasonable limits? In fact, many traders sell products at very low prices to make a profit. And this is not only happening in the online domain, but has also penetrated the offline domain as well. And if this continues then it is not impossible that the jungle law will apply. Who has enough capital, who will be the winner. If it reaches the extreme level, there will be no more profits. Revenue from consumers is only enough to cover operational costs.
The Big Challenges Faced by the Retail Industry Today There are two factors that become the breath of the retail industry, namely retail is retail and retail is expansion. Retail is detailed including attention to shop interiors, merchandising and discount prices. While retail is expansion means retail growth is determined by its expansion both in terms of products and stores. However, these two matters are limited by the government with Perpres No.11 / 2007 concerning the Arrangement and Development of Traditional Markets, Shopping Centers, and Modern Stores. And until 2019 retail entrepreneurs are still awaiting revision of this regulation. In Presidential Regulation No. 11/2007 there is a limit where previously the minimum requirement for department store land area was 400 m2, now it is only 200 m2. While the area of the gazette which was previously required to be at least 5,000 m2, becomes a minimum of 2,000 m2. Retailers are also required to conduct partnerships with micro-scale retail stores and supplier partnerships with stores to be supervised by the Business Competition Supervisory Commission (KPPU). This supervision is indeed a good aim, namely preventing the violation of business competition. However, the retail industry continues to be characterized by the absence of strict regulations for online entrepreneurs who have become strong competitors to date.
The Big Challenges Faced by the Retail Industry Today In addition to external factors, the challenges of the retail industry also come from internal companies. The retail industry is calculated to still have homework to improve communication with each other internally. With many divisions handling, inefficient communication is indeed a stumbling block. In addition, retail is also an industry with a high employee turnover rate. Meanwhile, when changing staff is not just the cost and energy that is drained. The effort needed to improve performance must also be harder. needed a leader who is able to increase employee involvement in the company through training and welfare. So that the employees who come will also survive.
Behind the various challenges that are being experienced, there are also retail companies that still provide the best products for their customers. A business is indeed established to face various challenges. Therefore, the points above need to be looked at carefully and found a solution together. Besides the prevention phase, the retail industry also needs a defense strategy.
The focus of managing the industry that has been established now must also be carried out. One of them is managing finances well. Accounting software that can be relied on to manage industrial finance is the Journal. Journal is the number one online accounting software in Indonesia. With Journal all the results and convenience that you expect in the company’s financial calculations will definitely be obtained. Enjoy a free trial for 14 days only here.