Big C's sales declined by 6% year-on-year for the half of the year, as non-food retail areas were closed and hours were limited due to night-time curfew. The retailer is making plans for the future to return to growth and prevent further business disruptions.
Strategies for adapting to new normal
The retailer has listed four priorities for growth post the crisis:
- Product assortment: focus on best selling SKUs, broaden assortment of products to support work-and-cook-at-home lifestyle, add more display space for fresh food in Mini Big C and strengthen price perception of food products at its stores
- Availability and stock management: improve sales forecasting to efficiently control stock level, adjust route planning and reduce inventory at DC while ensuring stock availability
- Omni-channel and O2O integration: diversify delivery options such as drive-through service, integrate loyalty program across all store formats, increase cross-merchandising promotions
- Brand awareness and customer loyalty: launch new communication campaign to build Big C image, build Big C as being hygienic and safe place for shopping
Ensuring business continuity
The retailer wants to be prepared for any business disruptions and the possibility of a second wave of lockdown due to COVID-19. It has identified key areas to focus on to minimize impact and capitalise on new business opportunities. This includes diversification for supply chain and distribution channels, flexibility to ensure accurate forecast by working closely with suppliers, speed of preparing non-store channels to serve shoppers and maintain high safety and hygiene standards even after lockdown measures.