By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Super Value will shortly reduce its warehouse inventory to pre-COVID-19 levels with the threat of food shortages and "embargoes" having eased, its president told this newspaper.
Rupert Roberts said the 13-store group will shortly "pull back" by 50 percent, reverting from 12 weeks' supply to the "normal" six weeks, to ease pressure to add extra space at the company's warehouse.
"I don't see any danger of the food shortages or an embargo on food exports from any country," added Mr Roberts, referring to fears during the early part of the COVID-19 pandemic. "So we're going to take our stocks back to normal.
"The warehouse was full. They were telling me I had to put in another bay. I said that we would go back from 12 weeks to six weeks worth of inventory. I'm going to pull back. When I promised the Government we were going to carry three months' inventory I had no idea the warehouse could not hold it.
"Between the warehouse and the dock we've always had 30 containers pending. I asked today why we had nine containers outside the warehouse and they were looking for shelving, and that I needed to build another bay. We're going to cut back."
Mr Roberts added that he had initially been "shocked" that sales were down by 15 percent for the last week of August until he realised the figures were up against pre-Hurricane Dorian shopping from the prior year.
Suggesting that they would have been "up a little bit" without the Dorian-effect, the Super Value chief added that the supermarket chain's focus through the end of this week will be on perishable goods with many persons having stocked up in anticipation of the now-aborted New Providence lockdown.
"Sales are up, but expenses are up too," Mr Roberts added. "Two months ago payroll overtime was up over 3 percent, and last month it was up over 8 percent on the previous year..."
However, he also disclosed that electricity costs had fallen by 22 percent year-over-year in August, although he did not clarify whether that was the result of the fall in global oil prices or Bahamas Power & Light's new hedging strategy.
"I hope for better," Mr Roberts said. "We put solar on the warehouse and cut our $45,000 bill per month to probably $3,000. "
Comments
trueBahamian 4 years, 3 months ago
He increased the prices on some of the items. In the midst of the pandemic, we were getting price gouging. Now he's reducing inventory. That's fine. But, can someone check what he's doing with prices. Unless I'm making a mistake, I've seen about 2 or 3 price changes on a couple of items in the store since March. To be fair, I have seen a lot of strange things pricewise with other companies as well. How does $12.00 pack of toilet paper prior to Covid curfews and lockdowns suddenly cost $30.00 after curfews and lockdowns? Is it Is a royal flush?
ohdrap4 4 years, 3 months ago
Just recycle newspaper if tp gets too expensive.
Dawes 4 years, 3 months ago
A lot is due to panic buying causing the price across the world to go up. In addition there has been some major issues with growing food across the world this year which will translate into higher prices. No idea how Super value works out its margins but we all pay more for non bread basket items thanks to those items. Just surprised that no other supermarket has not decided to undercut super value, as in time they would grow greatly.
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