Interview with Leonardo Remarchuk from Grupo Márquez: “We hope that the supply of products will become regularized”

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The general manager of Grupo Márquez aspires to a new normal by mid-2021, when suppliers finish catching up with stock levels. Although he anticipates that demand may decrease, he understands that the sector has already made adjustments to face any scenario.

By Hernán Murúa

Amid the “orderly chaos” that includes price list changes and business closures at the beginning of the month, once product availability becomes clear, Business integration exclusively interviewed the general manager of Grupo Marquez, Leonardo Remarchuk, allowing him to review a year in which “the pandemic accelerated processes and changes in certain work and consumption habits,” according to his definition.

In that sense, he considers that the pandemic found the company with a consolidated work team: "We had been observing what was happening in the world and, before preventive social isolation was decreed, we had the vision of generating the tools that allowed us to continue working without problems through the home office modality. This proved to be crucial in the weeks and months that followed the first weeks of quarantine."

-What was the evolution of sales?–asked Business integration.

-Many of the most in-demand products were sold out in the first months, and suppliers suffered cuts in their production chains, which led us to redouble our efforts in the commercial department to obtain the necessary products and keep the stores supplied. We prioritized ensuring that everyone has some stock, maybe not everything they needed, but trying to be as fair as possible when allocating merchandise. To do this, the purchase history of each store was used and, based on the percentage of participation of each of them, the merchandise that was obtained continued to be assigned to them.

-Has the necessary stock already been recovered?

-As of today, a depth of stock has not yet been generated again in some categories, to recover what was sold in these months, given that in many cases the suppliers are still having problems, as a result of the manufacturing protocols that make them work at 40, 50 or 60 percent of their installed capacity. They had their problems with COVID-19 cases, which caused the need to isolate work bubbles, and that affected their production and delivery levels. However, the good relationship that we generated for years with our strategic partners, who are our suppliers, meant that in times of crisis they delivered merchandise to us, to the extent of their possibilities and sometimes even above.

Remarchuk emphasizes the previous work carried out to make e-commerce available to all members of the group, allowing them to sell their products through the corporate website, and with all forms of payment, as key. “Having it already developed, we were able to quickly activate the corresponding work teams to carry out sales and customer service under that modality, marked by a need for products that could not be satisfied through the physical store,” he says.

-And the consumer responded?

-Forcibly, people lost their fear of online shopping and saw that it was a safe and comfortable method. This meant that our sales in physical stores were within what was foreseeable, with growth in real terms of 23 to 30%. But online sales were what made the difference, as they doubled or tripled, depending on the products. These sales represented in some cases 60% of the total sales of some stores, thus multiplying their profits, since the e-commerce customer is not necessarily the same as the physical store.

-What prospects do you have for next year?

-We hope that the supply of products will be regularized. Unless there is a resurgence of infections, by mid-2021, companies should be up to date with their production and stock levels. Demand will depend on macroeconomic variables such as inflation, salaries and the dollar. If wages beat inflation, we may have a more normal year. If, on the other hand, wages fall in real terms, consumption, and consequently the entire production chain, will suffer. I believe that our industry has already made the necessary adjustments in recent years, both the suppliers and the sales channel, so the structures are sized to face almost any crisis.

The executive adds that, according to his point of view, household appliances are a good store of value for those who can allocate part of their income to acquire them. “With the credit tools that we have today, such as Now 12, and keeping in mind that the costs are based on the official dollar, there should be no reason to postpone the purchase of that product that needs to be acquired,” he analyzes.

-And although it indicates that the group's structure is already adjusted, what are the priorities they have to follow market trends?

-At Grupo Marquez we are committed to continuing to generate tools so that stores can provide more and better services, focused on internal and external customers, taking advantage of the omnichannel that allows us to have around 150 branches and powerful e-commerce. Together with marketing actions, this positions us to fight in 2021. Of course, this generates a lot of effort in the team and the need to hire more people dedicated exclusively to meeting the demand of our e-commerce. Surely this will increase in the coming months and we will have to hire more staff.

In this regard, it is considered relevant that the group's member stores are attended to and supported by their own owners. "That, together with a team of professionals, allows us to provide a differential service that is much closer to what the client needs. We are not only a purchasing group, but we define ourselves as a group that provides the tools to buy well," he completes.

LOOKING FOR THE APARTMENT: CAME indicators show that in the SME segment the average year-on-year falls in March and April compared to 2019 were 53.5% in retail sales and 41% in industrial production. Although a slow moderation in the fall in activity has been observed since May, in July retail sales still registered a year-on-year decrease of 27.7%, while in June the decline in industrial production was 23.5% compared to the same month in 2019.

THE SO DREADED UNEMPLOYMENT: The report indicates that although layoffs are prohibited, between February and May 149,000 salaried positions were lost in the private sector, bringing the decline between May 2019 and May 2020 to 294,628 positions (-4.8%). The incidence of the crisis in the SME segment was relatively higher: CAME cites the Labor Indicators Survey of the National Ministry of Labor, which shows a drop in employment between June and February that in the group of companies with up to 49 employees was 2.4%, and among those that employ between 50 and 199 people, 1.7%. Among those with more than 200 employees, the decrease was around 1%.

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