A fresh start for SA retail

After a difficult year that saw year-on-year sales fall every month between the start of the hard lockdown and September, SA’s retail sector is hoping for a fresh start in 2021.

“Few retail merchants emerged unscathed from the level 4 and 5 lockdowns in March 2020,” says Steven Heilbron, pictured, CEO of the Connect Group of Companies.

“With vaccines on the horizon, 2021 will hopefully be a better year for South Africans in general and specifically the retail sector. To take advantage of business growth opportunities, however, retailers will need to be agile, and look at their operations and finances with fresh eyes.”

Heilbron suggests five ways to start 2021 on the right note:

Look for growth opportunities

The hard lockdown has reshaped consumer behaviours and expectations, creating new market niches for merchants to exploit. This is a good time to relook your business model and plans, adapt and innovate.

For example, if you don’t yet offer online ordering and delivery, this could be the time to dip your toes into the water. Adding a coffee shop, for example, could open up alternative streams of revenue.

Improve cash flow management

New age and reputable accounting software can help you run accurate and predictive forecasts, so that you understand the flow of money and inventory into and out of your business.

With Connect Group, you have access to an automated cash management solution enabling you to automate the flow of cash from your retail store to your bank account, and get access to capital in just 24 hours.

Identify cost optimisations

Analyse your expenses base from a zero-cost perspective. You might find cost savings by approaching your stock purchases differently or negotiating with service providers to receive discounts on bulk or cash purchases.

Look for cheaper suppliers, optimise cash handling costs, and evaluate the costs of subscriptions such as insurance.

Automate where possible

Automation is a great way to reduce costs by eliminating the need for manual labour. Instead of manually capturing data, your staff can focus on adding value for the shopper. Automating cash management, for example, eliminates errors, reduces the cash risk, increases business efficiency and eliminates shrinkage.

Quick access to finance

Whether you expand by adding a new product line, or renovate a store, you’ll need capital.

A financial technology solution allows you to apply for up to R2.5 million trading capital straight from an app on your smartphone. A short term, unsecured loan can reflect in your bank account in under 24 hours. –