Monday, February 23, 2009
By NEIL HARTNELL
Tribune Business Editor
and NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
THE SUPERVALUE supermarket chain yesterday indicated it shrugged off fears that consumers are taking longer every year to recover from their Christmas spending, with its sales increases for January and February 2012 "double and triple" 2011 comparatives.
Rupert Roberts, Supervalue's owner and president, told Tribune Business that the inelastic nature of demand for its grocery products, coupled with the demise of Robin Hood and City Markets' struggles, had helped his 10-store chain to escape the recession's worst effects and generate consistent year-over-year improvements.
"We haven't had any recession, and we've been up every year. This year has been no exception," Mr Roberts told Tribune Business. "December 2011's sales increase was the same as the previous year. January's increase was double the previous year, and February was triple the previous year, so we haven't had any decline."
He added that the first week in March "was exceptionally good - the whole week's been great right through to Sunday". This, it was suspected, was due in no small part to government pay day falling on February 27.
"We've been trying harder, trying to push customer service harder, trying to offer the public a better price, and I think they've realised it and are rewarding us for it," Mr Roberts said.
"When they see we've added three more registers, and they don't have to wait in peak periods, they appreciate it and notice it. They know we're trying; we may not always give them the service they desire, but they're conscious of what we're trying to give them and keep coming."
Mr Roberts said Supervalue had completed the installation of new equipment at Cable Beach, and had taken up more space at its 'Top-of-the-Hill' Mackey Street branch. It was also expanding its specialty foods product range, and had changed out the coolers and freezers for more energy-efficient equipment last summer.
The supermarket chain is also in the process of rolling-out "state-of-the-art" registers and scanning equipment at all Supervalue's 10 stores, Nassau Street and East Street being the last, that will place them on one system linked to head office. That is due to be completed by March-end.
Among Supervalue's challenges, Mr Roberts said, was a BEC bill that averaged between $400,000-$600,000 a month.
He told Tribune Business that energy costs were "actually more than store rents", and expressed concern that the charges associated with the new $83 million Arawak Cay port would raise freight costs and "add to the cost of living".
Retailers in other product categories appear not to have had as happy a time as Mr Roberts. With the Christmas shopping rush now dissipated, several say consumer spend has gone back down, some telling Tribune Business the retail environment was relatively "flat".
Steve Hoffer, chief executive of Hoffer Sport, one of the largest sporting goods retailers in the country, said : " It's been pretty flat. There hasn't really been very much business. I think it's been pretty much the same for a lot of persons in the business community. It was a little busy here and there. Overall, it hasn't really picked up since the Christmas rush."
"In April things usually get much busier for some reason. People are still sort of holding on to their money because they have spent quite a bit during Christmas. The beginning of the year people have a lot of their bills due, and so that was a factor.
"I think the end of March, the beginning of April, things will probably start to pick up again."
Charmaine Daley, manager at John's Department Store, told Tribune Business that while business was not the same as during the Christmas holiday, "It's staying steady. It's just that January was a slow period as always.
"Things have been pretty steady, though, and I expect that to be maintained until we get into the Easter period, when things start to pick up for us again."
Peter Philips, managing director of Brass & Leather Shops, told Tribune Business: "Just generally speaking, things are just flat right now. The business environment is still very challenging."
One local businessman described the retail environment as "up and down", telling Tribune Business: "There are days when you see things pick up a bit and then others where things are down."
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