STOCKING RETAIL SHOPS WITHOUT CASH IN DEVELOPING COUNTRIES.
By Salatiel Sakala.
Stock is very important if you are in the retail business. The business of selling goods and products requires that the business owner ensures that they have adequate stock. This is true for businesses that are in trading of consumables and non- consumables.
There is a new trend that I have seen in most retails shops that sell house consumable products. These retails shops generally operate in suburbs and compounds. They are usually run by small business owners who cannot be classified as a small medium entrepreneur. Even though this might be the case, they still make some income at the end of the day, week, month and year. Businesses in these times has been hard especially for these entrepreneurs who cannot easily get finance to buy stock for their retail shops. To overcome this challenge, they cooperate with other retails shop owners in different locations. This cooperation leads to movement of stock from one shop to the other. This sharing of stock helps them to have enough stock in their shops.
There are some factors that they considered when sharing stock with each other. These factors include some of the following:
a) Fast moving stock: the shop owners will get stock from their friends that have high demand in that area where they are operating from. They have classified stock in terms of fast moving (stock which has high demand from their customers) and those that slow moving (stock that is not on high demand) and
b) Stock that has a long shelf life is most desired as it is seen as a future money earner. This mainly is dependent seasonal fluctuations in terms of demand of that stock. They might keep it on the shelf all season round.
There are main benefits to this type of cooperation but one benefit that stands out the most is that there is less chance of losing a future sale.