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We have arrived in the final month of 2013. To welcome 2014, we’ve prepared a Rencana Runcit that discusses a timely issue – the petrol price hike. We gathered views from a few retailers on the impact of the price increase to their businesses and provided some practical tips for both your business and lifestyle at the end of it.

Learn more about wheat flour, a Malaysian staple, in Kategori Runcit where we discuss its different types and uses. Also, get inspired by the success of our Wira Runcit, CS Brothers Sdn Bhd. With branches opening in developing areas, this independent supermarket chain focusses on providing convenience to its shoppers. In addition, get to know the latest addition to Runcit Media’s host of advertising media – the Retail Billboard. With prominent size and pacement, this medium is sure to grab shoppers’ attention especially in high traffic areas.

We wish you a good start to 2014. Happy new year!

START POSITIVELY

EDITORIAL TEAM

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FACING PRICE INCREASERetailers’ views on the petrol price hike

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On 2 September, the government announced a 20 sen increase in RON95 petrol and diesel. Two days later, the price of RON97 petrol increased by 15 sen. The increase in petrol prices resulted in mixed responses from the public, especially since it was the first increase in three years time. RUNCIT MALAYSIA spoke to several traditional retailers to find out their opinions on this issue and how it will affect their businesses.

Petrol price increases in the last 10 years* source: http://blog.galvintan.com/malaysian-fuel-price-history

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Q1 How do you feel about the price increase?

Quite burdening despite having daily income. Now full tank is RM100 compared to RM80 previously. I go to the bank less often. – Haji Anuar

Life and business have to go on. If shoppers request for an item that my salesmen cannot provide, I would still try my best to source for them regardless of the cost. – Yap Wan Koi

Now I spend about RM200 on petrol monthly. I do not go to nearby hypermarket to buy cheaper goods in bulk for the shop as often. I wait for salesmen instead. – Syahibul Alani

Interviewed panel of retailers

Q2 Which product categories have been affected?

So far only fresh produce is affected because of my daily trips to the market. I have no choice but to absorb the extra cost to retain my shoppers. - Kopal

Lately the most obvious are growing up milk, canned foods, sauces and cigarette. For detergent, price remains but less quantity. - Reetha

Normally, you can see changes in growing up milk, either price increase or reduced quantity. – James Chu

Q3 Will consumers change their buying habits?

To cut traveling cost people come to nearby shops more often and buy more items than they used to. – James Chu

I believe middle to low income shoppers will switch to cheaper alternatives. – Mohamed Dharik

Many shoppers avoid going to hypermarket so they do not spend more on petrol, parking, food and impulse purchases. If they go to kedai runcit, they don’t need to bring the whole family. – Haji Anuar

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(cont’d) Q4 How would you explain any price increase to shoppers?

Tell the truth (that suppliers can't give better prices). However, I will continue to negotiate with suppliers, maybe change buying terms eg increase purchase quantity to get better prices. – Haji Anuar

Say that it is due to a chain reaction starting from increased petrol prices to higher production and shipping costs. – Yap Wan Koi

Q5 How would you maintain a healthy business despite this situation?

I extend credit facility to regular shoppers who own units in these flats (not to tenants). They can take products and make payment at the end of the month. – Reetha

Maintain good service and manage suppliers well. Always ensure timely payment and give priority to those who offer promotions. – Kopal

Focus on target shoppers, who are the residents in this area. Ensure good service and comfortable shopping environment. – Mohamed Dharik

Our Advice to Retailers

As you welcome 2014, business may be a bit more challenging than before. However, there are things you can do to reduce the impact of increasing prices on your business.

1. Warn shoppers of any price increases before they take place. Always ask suppliers if they will be increasing prices so you can be prepared.

2. Find out what shoppers usually buy at hypermarkets. Then, offer the same items and if you can, work out some discounts for a few of them. This can encourage shoppers to reduce their visits to modern trade outlets.

3. Cater to price sensitive shoppers by stocking up on smaller pack sizes and mass range products if you are carrying mostly premium range.

4. Stock up wisely. Do not simply jump at promotions offered by suppliers. Consider the demand for their brands in your shop. You must avoid having your money tied up in unsellable stocks.

4 Money-Saving Tips

Since you are also a consumer, you may want to try these simple tips to reduce expenses:

1. Eat more at home to save money on traveling and nice to have desserts. You can also cook bigger meals and keep them in the freezer.

2. Wait for cheap sales before making big purchases. Also, consider buying pre-owned items.

3. Omit unnecessary services from your communications costs such as for Internet data plan, home phone and cable TV.

4. Reduce fuel consumption. Plan your journey, avoid excess weight and idling and make sure your tires are always at the correct pressure.

When A Robbery Occurs...

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You may have been taking measures to prevent robbery in your shop such as installing CCTV and putting up warning signs. However, it is good to know what to do when robbery happens.

1. Close your shop immediately, especially if you and other witnesses are injured. Don’t tamper with evidence and keep remaining cash in a safe place.

2. Call the police. For the fastest response, dial the nearest police station. If you don’t have the number, dial 999, give a basic account of the incidence and details such as your name and shop address.

3. Ask witnesses to stay until the police come. If they can’t wait, get their details such as full name, IC number, address and phone number.

4. Write down what happened. Discuss with witnesses to confirm the robber’s identity, which way he escaped, type & vehicle registration number and the weapon used. Also, count the amount of your losses and prepare your CCTV recording so you can hand it to the police.

5. Submit your insurance claims by providing documents such as CCTV recording, pictures of the crime scene and the police report to your insurance provider.

Notify your insurance company within 30 days to avoid any delay in getting your claims.

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Doing More In Less Time

With your busy schedule, it helps to be able to do things faster. Sometimes all you need is to give extra attention and willpower to complete your tasks. Here are some tips from us:

1. Plan your day. Having a to do list have helped many people become more productive. The best time to build it is the night before. Decide the most important tasks and do them first so even if you don’t get much done you still have a productive day.

2. Wake up an hour earlier than usual. Not only will you get more time in your day, you will also feel more motivated and get tired enough to get a good night’s sleep.

3. Understand your different roles in life will help you prioritise. Say you are a husband, a father, a business partner and a retailer, decide what you want to achieve in each role. Remember, your goals must not be conflicting with your responsibilities for every role you play.

4. Delegate to the right people so you do not waste time correcting other people’s mistakes. Take some time to teach others to do things you always do so you can move on to do more useful things.

5. Find shortcuts and try new things. Sometimes it’s not doing the same things that demotivate you, but doing them the same way. Be creative and involve your team to find ways to do things better.

Tell yourself you will only work on one task for a set amount of time. Set a timer and focus. When the time is up, stop and do other things.

Create A Huge Impact With Our

RETAIL BILLBOARD

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Brands constantly fight for space and attention in store. Therefore, the outside is where the opportunity lies for brands to gain a share of shoppers’ minds and subsequently, their wallets. In order to do this effectively, your advertising medium needs prominence to grab your shoppers’ attention. Our newly introduced medium, Retail Billboard, offers you the optimal solution to achieve this.

Your Billboard at Retail PointsOur Retail Billboard measures 20 feet in width and 6 feet in height. With such huge size, you have the freedom to create more impactful artwork. While traditional approach may place your logo next to the shop’s name on the signage, our Retail Billboard is a bigger, separate medium that is placed next to or above the shop signage. In addition, it comes with spotlights and timer to make it visible at night.

Placed at High Value Outlets of Your ChoiceWhen you engage our services for the Retail Billboard, you have the liberty to nominate well- performing outlets or select them from our list. We follow strict and elaborate recruitment criteria (more details below) to ensure the Retail Billboard is only placed at high value outlets in high traffic or populated areas.

Other Criteria for Outlet Recruitment

Apart from the shop format and performance, we also take into account the following available fillings and surrounding facilities when recruiting outlets for the Retail Billboard.

Fittings

Freezer for frozen foodBeverage house chillerBeverage sponsored chillerBread shelfIce-cream boxCredit card terminalBarcode scanner

Surrounding Facilities(within 2km radius)

BankSchoolHousing areaMain roadEateriesFood courtOffice lot/building

Attention Retailers!

If your shop has these fittings & facilities, contact us for your

opportunityFor more information, call us for a presentation!RUNCIT MEDIA SDN BHDTel: 03 7957 1718 E-mail: info@runcit.com.my

PRIORITISING CONVENIENCE

CS Brothers continues to succeed by ensuring comfortable shopping

experience always

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RMM: Can you give us an update on CS Brothers’ business?We have moved our Cheras outlet from the shoplots in Taman Anggerik to this warehouse in Taman Tun Perak. Our Puchong and Kajang outlets are doing well and so are our newer outlets in Hulu Langat and Nilai. We are also in the process of opening another branch in Bangi. Our focus now is on suburban and developing areas.

RMM: How do you manage to open several new outlets in such a short time?Since the start of this business, we have been putting aside a certain amount from our monthly income into an expansion fund so when the opportunity comes we have no issue financing a new outlet. This is more important now because we want to get bigger places so we can offer more convenience to shoppers.

RMM: Can you elaborate on the convenience that CS Brothers offers?Each outlet consists of between 5 to 7 shoplots. This big size allows for more space between aisles so shoppers can move their shopping carts around easily. For this Cheras outlet, we use the warehouse concept in which there is only one floor. We found that shoppers tend to purchase more items when they do not have to go to different floors to find them. The same concept will be applied to our upcoming Bangi outlet.

We also have small stalls offering food, beverages, telephone services, clothing and many others in our foyer. This makes us a one-stop centre for the residents in this area. In addition, the rentals collected contribute to our income. We always make sure that there is ample parking for our shoppers too. In future, we plan to set up a play area to make it easier for shoppers with small children to shop here.

Four years have passed since we featured CS Brothers Sdn Bhd in this column. Today, the independent supermarket chain has not only grown in size and numbers, but also in its offerings. Y.P Loo, its General Manager shared the story with us.

RMM: How do you attract and maintain your wholesale customers?Most of these customers are very busy so we take their orders by phone. They can then come to collect the items once they close businesses for the day. We also have a coin vending machine so they can change money here. The bulk of our wholesale sales come from fresh produce. We source our stocks directly from farms to ensure freshness. This also enables us to offer prices that are comparable to wholesale markets, which can be extended to not only wholesale customers but also other shoppers.

RMM: How do you manage several business partners and over 300 staff in five outlets?Even though this is a family business, everyone has an outlet or department that they are in charge of. We will meet every three months to discuss issues that may affect our operation. We also scale down responsibilities by appointing department heads to manage supervisors who are responsible of monitoring the staff. Their roles will be rotated so they can learn how to manage different departments. This ensures smooth operation should there be any termination or resignation.

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WIDE RANGE OF SPICESWe have been selling various types of spices in our shop for the past 35 years. This is due to high and constant demand from shoppers. These products attract not just Indian shoppers, but also other races who find it convenient that we offer wide and complete range of spices.

Mahadir & Ridzuan M.APasar Mini Taman PutraAmpang, SelangorPL: Lucas Kum

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SPECIAL DISPLAY FOR PROMOTIONEvery month, I will conduct promotion for selected items. The products will be placed on a special display at the entrance of my shop. This has attracted more shoppers and helps me sell more products faster and finish stocks before they reach expiry dates.

Ling Oon Seng Pasaraya S.G.FCheras, Kuala LumpurPL: Lucas Kum

WATER VENDING MACHINEFive years ago, I placed this water vending machine in front of my shop. Response from shoppers has been very good especially from those living in the nearby flats. The machine provides cleaner water, attracts more shoppers and indirectly helps to increase my sales.

S. KarthikesuKedai Runcit S.K.MCheras, Kuala LumpurPL: Lucas Kum

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DIFFERENTIATING FACTOROver the last few years, many convenience stores have been set up in this area. My secret to survival is offering convenient services that are not available in those stores such as delivering cooking gas and selling fresh meat, vegetables as well as freshly grated coconuts.

Nadarajan a/l Periasamy PillaiPasar Mini Melur JayaAmpang, SelangorPL: Lucas Kum

BSN SERVICESAs a registered BSN agent, we provide cash withdrawal, deposit, bill payment and other services. Our business has improved since we introduced these services two years ago. Since my shoppers appreciate the convenience, I also offer the bill payment service during public holidays.

R. RamesPasar Mini Sri ValliKulai, JohorPL: Peter Lim

In any place of work, where you have a group of employees, there are bound to be some disgruntled ones which you need to get rid of, before they affect the whole team. Some misconducts that they may cause are as follows:•Not meeting deadlines.•Poor rapport between employer and employees due to the assumed ‘unfair’ treatment.•Lack of commitment and integrity which always leads to employee theft.

Work place etiquette relates to how your employees conduct themselves. It can create a conducive working environment and promote teamwork, honesty and integrity. As each one has different characteristics, you need to your employees together to follow a set of work ethics. Here are some tips to do this:

PROMOTE GOOD ETHICSTo create a good working environment

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1. Practise what you preach.Your employees watches you all the time and their conduct depends on how you guide them. All you need is to convert a few employees and the rest will follow. If your ultimate objective is to build a strong, reliable and trusted team, make sure you inculcate all these good ethics into them.

2. Be strict and fair in all dealings.Do not show favouritism to any of your employees. Reprimand those who go against the work ethics. Try not to let any mistakes go unnoticed. Sometimes you may have to make unpleasant decisions. This is where you need to be objective and not influenced by outside factors. Do not pry into personal matters or expose it to other employees. Remember, if you respect your employees, they will respect you. Always be honest and truthful in your relationships with your employees.

3. Compliment and reward deserving employees.To make known to the employees that you are watching them closely, it may be good to reward those who are practising the good work ethics that you have set. This will also create a healthy in-house competition and those who are lacking will have no choice but to buck up. Watch out for employees who often try to criticise the management to ensure that they are not giving bad influence to others.

4. Teamwork is key to success.Teamwork will get all the employees to work closely together, in order to get positive results. This will create an atmosphere of interdependence on each other where everyone gives their best at all times.

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5. Look after the employees’s interest.If the employees are happy, they will value their job. This includes giving them the security and required training so they can remain long in the company. A high turnover of employees must be avoided as it will affect your operation and cause a disruption to the good work ethics.

You must be fully aware of what your employees are going through in their daily work and if they are lacking in any part, your assistance should be a great help to them. How you look and present yourself is also one area which makes up the good work ethics.

If you have successfully developed good ethics in your company, your success will very much depend on your enforcement. Remember, good work ethics will also help to increase productivity and efficiency levels of the employees. All the best!

Conducting PromotionQ2 - I have limited space for block display. Many suppliers want to use this space for their promotions. How do I decide which brand to choose?Green Mart Hutan MelintangHutan Melintang, Perak

It is a good idea to make use of the space in your shop for special block displays. Apart from getting incentives from suppliers, it is a good way to drive sales and attract more shoppers.

When you have more than one brand to choose from, ask yourself these three questions; is there a demand for this brand? Is this promotion suitable for this period of time? Can I agree to the trade deals offered by this supplier? Always clear out your concerns and negotiate with suppliers before agreeing to conduct any promotion.

Product RangeQ1 - Is it good to have a wide product range? I think when shoppers have too many options, for example same products but many different brands, they will have a hard time making decision.Pasaraya Karnival (Jerai) Sdn BhdGurun, Kedah

Providing options is a good way to attract and maintain shoppers. However, you need to choose wisely on which brands for each product that you want to offer. Focus on what your shoppers need and want to buy. It can be a combination of popular brands, the right sizing (stock keeping unit or SKU) or more reasonably priced alternatives.

The key is in understanding your shoppers and knowing how much you need to stock up. This information can be

gathered by talking to your shoppers and suppliers as well as tracking and analysing your monthly sales.

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Tracking SalesQ3 My shop is small with just one cashier counter. How do I track sales of different items?Cik Yah HassanTemerloh, Pahang

If you haven’t, you should invest in a modern cash register. Most of these machines allow you to assign codes to different product categories. This will help you to segment your sales and see how much you are making from each category at the end of the day.

You may also want to consider the entry level of barcode system. This more advanced system helps retailers track their stock levels and sales more effectively.

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