Adapting 101
Supermarket owners learn lessons on surviving lean times
Stabroek News
March 12, 2004

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Two supermarket owners say despite the challenging business environment they have been able to survive by the essential tactic of adapting.

Johnny Pires, owner of Johnny P Supermarket in South Ruimveldt Park, now in its ninth year, says he has had to adopt new business strategies.

From 1998, when the profits of the supermarket began to decline, Pires said his strategy was to increase his inventory so that he could supply more of his customers' needs. Inventory has been increased by 100% and Pires says the supermarket continues to enjoy profits as before. He would continue to extend his inventory but, "It is just getting harder so I have to work harder...I have an obligation to take care of the people in this area."

According to Pires, any ambitious businessman must be a "go getter" and continue to develop strategies.

Every month he says he tries to implement changes. An ongoing project is replacing wooden shelves with steel ones because the wooden shelves take up more space and hide the product. Late last year a full hardware and a fresh produce section became part of the supermarket. In a month or so the computer system is expected to be upgraded to provide greater security.

But Pires has also dropped ventures that were not profitable or did not fit in. The supermarket no longer has a video club because it was unprofitable and the pool tables which provided entertainment were removed due to improper conduct by patrons. Pires describes the sales of local products as very good and add that more and more persons are demanding local products such as canned coconut milk and snacks.

Joan Kirton, the manager of Bonny's Marketing Complex and Supermarket on Church street, says since the facility is considered to be quite modern what they are presently doing is maintaining those standards even though business is not at its best.

"You would love to implement more systems to please customers," says Kirton, but says the volume of business does not permit this.

Some of the features in the supermarket include air conditioning and a frozen goods area for pre-cooked foods and meats.

"Basically my customers are so satisfied with this supermarket... no one has... asked for [improvements] ...there is basically not much improvements."

She wants to install a checking counter, but "the electricity bill is so high." And she says she must guard against putting in more than she is getting out of the business.

A very significant development that Kirton has noted is the increased sales from local goods.

"It sells. But some of them are not properly labelled," Kirton notes, adding that the imported products sells faster because of their presentation.

She notes that manufacturers of local products really try, because there is evidence of using technologies such as computers to design labels.

Kirton explains that local manufacturers must increase their capital expenditure to improve the appearance of their products.

"They have to spend money to get money."

She also argues that Guyanese products being sold abroad have a better appearance than those being sold here saying, "if [manufacturers] do the same here [they] will sell more."

Despite all the challenges, Kirton says, "I am optimistic. I am trying."