With low sales, supermarkets in Brazil reduce stocks even of eggs and milk

Published Jul 20, 2022

Tridge summary

While negotiating with suppliers better prices for the goods, chains reduce the purchase of products such as eggs and milk. Chains order from suppliers just so they are sure that it will be sold and they negotiate prices. With demand in free fall due to inflation, supermarket chains have worked with smaller inventories and sought to balance orders, by ordering only the forecast of what the consumer will actually buy.

Original content

With this greater selectivity, however, the arm wrestling between retailers and the industry has increased, which has been more judicious in discounts for large orders. The shopkeepers, in general, have been right in the forecasts. The so-called breakage rate (when the customer does not find all the brands of a specific product), calculated by Neogrid, a company specializing in supply chains, fell in June, to 11%, compared to 11.5% in May. This indicator shows occasional shortages, due to lower inventories and delayed deliveries. Although overall the index has improved, this calculation is not valid for important items such as eggs and milk. According to Robson Munhoz, director of Neogrid, retail has been working with the lowest level of inventories in two years. “Retailers are no longer buying out of opportunity, but out of necessity. Several industries have limited volumes and, therefore, the discounts granted have been more judicious”, he says. The unavailability of long-life ...
Source: Sintracoop
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