Board And Management Of Ace Superstore

As members of the board and of management of Ace Superstore, we understand that all retailers may be impacted by various macro-economic factors, which may include political, economic, technological and environmental factors. Currently, the strained local and global economy has a significant impact on the way we do business and the strategic decisions to be taken, such as the opening of a new store. During tough economic times, people typically spend less, thinking twice when making purchases that are not essential. Retailers, specifically targeting the lower to middle class consumer (LSM) may therefore see a decline in sales and profits as a result of this drop in consumer confidence. This change in consumer behaviour may necessitate the need for Ace Superstore to modify its strategies in order to navigate the poor economy, including tightening our belts by lowering expenses, reducing stockholding costs, minimizing wastage (obsolete stock), reducing stock losses and providing promotions to attract new or to retain existing customers.

Expanding operations by opening a new store in the midst of a tough economic climate will result in significant obstacles for the business. In addition to consumer spending being constrained, attracting new customers and building

Broaden product offering: ACE Superstore can strive to appeal to a wider customer base by offering a broader range of products which are relevant, sought after and perhaps even area specific. For example, during the COVID-19 pandemic, retailers that did not stock face masks or sanitizers missed out on major opportunities to generate sales and were left behind by their competitors. ACE Superstore can do thorough market research to establish those items that are sought after but not freely available or items that there would be a significant interest in e.g., stocking pies made by a local manufacturer which the community supports tremendously and which is not stocked by the other retailers in the