Question

what the risk that faced Hyper Pandas retail company and how overcome this risk and how will be impacting on Hyper panda retail company success?

Answer 1

Panda Retail Company is a Saudi Arabian grocery retailing company. Panda is one of The Savola Group’s subsidiaries. The Savola Group is ranked ninth amongst the top 100 companies in the Saudi Arabian market and ranked second amongst the industrial sector after SABIC.

Challenges faced BY Hyper Panda retail company are as follow

1. Lack of access to accurate, timely financial information

Running a grocery store can be challenging with a constant need to access more relevant financial and operational information about the business. With increased competition from superstores, the grocery operators are required to provision for high-level strategic analysis of the sales and margins by store department.

2. Escalating Labor Costs

Controlling operational costs is certainly one of the biggest challenges that Hyper Pandas retail company faces. Since grocery stores run on extremely low profit margins, the need for a lean and efficient operation is critical. Labor costs are the single greatest controllable expense.

3. Low Profit Margins

Hyper Pandas retail compan operate with extremely low margins and rely on improving sales volume to generate profits. Profit margins are razor thin Moreove, competition limits a company's ability to raise prices. As a result, Grocers struggle to survive due to a combination of intense price competition and low margins in the grocery retailing industry and are looking for the cost-effective ways to improve their business profitability.

4. Managing Cash Flows

In today's business environment, the grocery owners need to effectively manage the cash flows to improve their store's profitability. Effective monitoring & tracking business cash flows helps the grocery operators to expand capacity, increase inventory, extend their product lines and penetrate new markets. However, tracking the cash flows is extremely challenging for the grocers as it requires access to high quality financial reports and business intelligence dashboards.

5. Issues In Existing Store Systems Technology

Hyper Pandas retail company have added technology at a conservative pace over the years, mainly due to precise ROI requirements. It is an industry that runs on very low profit margins. New solutions need to demonstrate quick payback through increased sales and profits, and/or reduced costs to the operation. Technologies designed to improve the customer’s experience in the grocery store, such as faster checkout, or ways to provide additional information to the customer are sometimes difficult to justify when chains are focused on their bottom line.

It could have direct impact on the growth of the company and the marklet share of the company will fall dowm very radily due to such fears and the obsolence of the technology is one the major face for the company

Due to less profit margin and cut throat competition in the market it ios very important to plan the statergies and implement it . Hyper Pandas retail company is very big and profit making company and it need to address these issues to become the global leader