Bbgbs23:
Erosion deh Anambra. No forget.

We've heard you man. You're a true son of the soil. You're the lightt of your community and as such you need to keep displaying your ingenuity - the kind that your people have, which is in full display now.

Bravo ..... The lightt of his people.

Tunedey0001:


You can't know immediately but with how this is solve is that most prone items are always at the cashier counter

How does this prevent the cashier from stealing them? And of what use is the audit, if you don’t find out immediately and stop the source?

By supermarket, I hope you're not referring to a provision store.

Supermarkets are capital intensive and you shouldn't be expecting return on investment any time soon.

The best thing you can do for yourself is get a location where there is high traffic. Supermarkets thrive on volume and turnover, so you need a place where there are a lot people. Even so, that comes with its challenges.

First is security. You will need to invest heavily on surveillance systems in and around your business. Secondly, you have to worry about staffing, you don't want to hire staff stealing off your shelves. Customers can do that too. You must also provide your own electricity because your supermarket needs to be well lit. Factor the cost of a generator that will do the job as well as powering air-conditioning for cooling. Remember how much diesel costs.

Having access to the variety of goods or products people go for is important, you don't want to open with a full shop and end with empty shelves in between.

Most importantly, customer service is the soul of any retail business. You want your customers to come in and go out extremely satisfied of their shopping experience in your supermarket. That is what guarantees a comeback and believe me, that is what you need.

sonnie10:

How does this prevent the cashier from stealing them? And of what use is the audit, if you don’t find out immediately and stop the source?

The product is in her care the cashier will pay for it.

Tunedey0001:


Each pack as number of PCs in a seal the open ones are kept with cashier like Tom Tom, bubble gum etc

And for the cowbell, Milo chocolate and biscuit all this will be empty on the shelf per cartons, the merchandiser that arrange it most report any damage immediately or if one of the roll is not complete due to factory error this can be return to vendor.


Now how I carry out inventory on this smaller items is cycle counting them by category using serial number.

You must a very busy job counting these things periodically to balance the accounts. You count nacet blade, tiger blade, Gillette blade, bic shaving to know how many blades left in the pack? Then you also count all the brands of open box toilet rolls?
Most made in Nigeria Candies don’t have serial number. And if you creat one with a sticker, the price of sticker is even more than the price of a candy.

It's lucrative but you have to pray for honest workforce otherwise you'll run out of business within two years .

sonnie10:

You must a very busy job counting these things periodically to balance the accounts. You count nacet blade, tiger blade, Gillette blade, bic shaving to know how many blades left in the pack? Then you also count all the brands of open box toilet rolls?
Most made in Nigeria Candies don’t have serial number. And if you creat one with a sticker, the price of sticker is even more than the price of a candy.

They're easy to count
Have been auditing supermarket for like 7 years now and I don't find it stressful at all

I also audit phone stores also
And I use different method for different product

Tunedey0001:


The product is in her care the cashier will pay for it.

I doubt she will pay. She will sell another item that is not in her care, she won’t record it. She will them use the money to settle her debt.
That other item, she would report as stolen by shoplifter.

Tunedey0001:


They're easy to count
Have been auditing supermarket for like 7 years now and I don't find it stressful at all

I also audit phone stores also
And I use different method for different product

How long does it take you to go round a typical size supermarket to count every item?

sonnie10:
I doubt she will pay. She will sell another item that is not in her care, she won’t record it. She will them use the money to settle her debt.
That other item, she would report as stolen by shoplifter.

Big supermarket has camera everywhere and most of them sign contract that once cut stealing they will pay heavy fine and most are scared of the cctv even when it's not been monitored

sonnie10:

How long does it take you to go round a typical size supermarket to count every item?

You mean periodic inventory?

If yes a day or two

Location and other services are key here.... mini mart, blood pressure and sugar check, counseling etc can help that business model

hustla:



What of pharmacy?

as a manager of one of the leading supermarket in this country.
i can tell you that supermarket business is very profitable.

i wished not to state who i am has i did above. but to register as an authority.

there're a lot you need to know about this business before you put your money.
* it's a business of leverage.
* just as we have tier 1,2 and 3 banks. likewise in retail business. (this is to a layman how big u envisage, both in terms of size and capital)
*no matter how much u have, you'll burnt ur fingers. it's not about ur money. it's about how many manufactures, importers, direct distributors and dealers u know.
* you only need more money for fix asset and some for goods.
* you don't make money in this business by how much markup u put on each goods. but ur profit is a determinant factors of where u buy from, who, when and how u buy.

in general. don't under estimate the power of retail. if u doubt, ask Alibaba AKA jack mar

Tunedey0001:


Big supermarket has camera everywhere and most of them sign contract that once cut stealing they will pay heavy fine and most are scared of the cctv even when it's not been monitored

That means they might be caught and the supermarket will gradually collapse.
Is not even like they hid to take the things, no. They work with their accomplices who would prentend to pay at counter and then walk way with the item.

Thank you all for your comments

I appreciate

Tunedey0001:


You mean periodic inventory?

If yes a day or two

At what intervals?

I think i will need to look into used electionics importation and sales then(phones, laptops, etc)

Dialpad:
Lol
That business is saturated, you need proper management to be successful.

Unless you have a solid Unique selling point, it may just be like many of the others .... struggling.

Please do not be deceived by the number of people you see on the que, cost of running such a business is not EASY.

ok what of used electronics importation and sales?

sonnie10:

That means they might be caught and the supermarket will gradually collapse.
Is not even like they hid to take the things, no. They work with their accomplices who would prentend to pay at counter and then walk way with the item.

I got your point and view here very possible and the security man won't even notice this because he will only mark the receipt and not check the content of item bought.

The aim is to reduce theft to the lowest it can't be totally eradicate.

Supermarket business is lucrative, if you can merge it with bakery you will be rolling in money. I work in a supermarket so I know what I'm saying.

IceColdVeins:
I don’t think that business is lucrative!
The running cost is just too high.
Yeah daily huge revenue is assured, if your supermarket attracts a lots of people (that’s not even assured). But thinking about the 24/7 electricity costs, the tax, logistics, wages of workers (atleast three), purchase and maintenance of database server, internet subscriptions, clever shoplifters and shop rent etc, you need to be selling highly profitable products for you to get a high profit margin in a financial year. Sadly, people prefer to buy the highly profitable products in the local markets. How many people would head into a supermarket to purchase kitchen utensils and other home accessories?
Moreover, every government policy will drastically affect you either negatively or positively e.g money volume, fuel price hike, VAT etc.
Omo I’m tired of typing…

thanks ... What about used electionics ?

HenryThegreat1:

Hmm
Standard supermarket like prince Ebano, Blenco, market Square, shoprite etc,
I can guide you from the beginning to the end.
My company is into offering of supermarket solutions from design to shelving to refrigerator and lot more.

not like those ones ooh
atleast 4-5 stores combines

sonnie10:

At what intervals?

It depend on the management

I advice minimum quarterly but best perform monthly so that reconciliation can take place immediately after findings.

Tunedey0001:


I got your point and view here very possible and the security man won't even notice this because he will only mark the receipt and not check the content of item bought.

The aim is to reduce theft to the lowest it can't be totally eradicate.

security ke? Person way salesgirl don carry kpekus scatter him head go report such?
Sorry to use this word,

Tunedey0001:


It depend on the management

I advice minimum quarterly but best perform monthly so that reconciliation can take place immediately after findings.

Lol. That quarterly interval, by then sale girl don build house for owner head.

sonnie10:

Lol. That quarterly interval, by then sale girl don build house for owner head.

External Auditor not internal auditing

sonnie10:
security ke? Person way salesgirl don carry kpekus scatter him head go report such?
Sorry to use this word,

As an external auditor mine is to carry out my duty according to SOP of the organization and give well read report and recommendation.

The cost of running a supermarket is too high.

Look around the ones within your area, Out of 10 big supermarkets, 6 to 7 are struggling.

I will advise you go into clothing, as it has more profit margin it's always in demand.

Tunedey0001:


As an external auditor mine is to carry out my duty according to SOP of the organization and give well read report and recommendation.

And then what? Owner is aware of the loss but not certain about the source. He makes noise, licks his wound and go bankruptcy.

PoloG:
Greetings y'all..

Please i would like to know how lucrative is a supermarket business ...

How much would it cost to setup a standard one

And what is the ROI monthly/yearly ...

Location is ibadan

I think there's good money to be made but it's mostly a turnover business. Profits are not m7ch but huge turnover makes up for the tiny profits.

You have need awesome book keeping to make sure your cashiers aren't defrauding ypu.

You also need to be on the alert regRding shrinkage, that is industry word for stealing of goods. The less the theft, the more money you make. You can factor in the price of shrinkage in your prices.