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#Written by David Tam, 1996. #
#davidkftam@netscape.net Copyright 1999#
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David Tam
Tuesday, October 15, 1996.
Business Press Review
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Leitech, Carolyn. "Retailers blame bad weather for slump". The Globe and Mail.
Thursday, October 10, 1996. B9. ------------------
Though many retailers are blaming the bad summer weather for poor sales
results, the Canadian Bond Rating Service has found that this excuse is not
fully acceptable. Retailers who are truly entrepreneurial have had success, in
contrast to the less entrepreneurial competition. Though retailers must deal
with high levels of inventory, high consumer debt load, and low consumer
confidence, these problems can be overcome. The CBRS found that stores that
expand and renovate, trim costs and offer high value to customers have
succeeded this past summer. These findings apply to the the merchandise and
food industry.
One very good example mentioned in the article is Wal-Mart of Canada. Over
this past summer, sales increased in all departments, including seasonals such
as lawn and garden products. Their success is attributed to their efficient
distribution system, good management, high-margin private label brands, and an
increase in the variety of products. Wal-Mart's entrepreneurial spirit has
caught the attention of the Canadian retailers and some are starting to respond
to the competition; for instance, Canadian Tire Corp is starting to improve its
own operations.
We have been taught in our lectures that there are always opportunities for
those who are entrepreneurial enough to search for them and find them. I
believe this idea applies very well in this article. Canadian retailers must
stop blaming Wal-mart, the weather, new consumer attitudes, the alignment of
the planets, and everything else under the Sun, for their own failures. They
have failed because they failed to remain competitive in the new Canadian
market. Ironically, we should thank Wal-Mart for showing us (the Canadian
retailers) the errors in our old ways. Without the giant U.S. retailer, we
would still be stuck with our uncompetitive mindset. In these harsh economic
times (post baby-boomer era), those who will build a bright future for
themselves are the entrepreneurs, despite the mind set society has about our
current generation.
(
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