Australian Retail: Cost reduction solutions

The current lack of retail consumer confidence ( and spend) is hitting retailers hard.

Revenues are down , foot traffic thru stores is down.

The only growth area seems to be Internet sales. Many retailers are looking at cost reduction strategies in order to maintain their margins. This makes good sense as it can deliver immediate savings and also provide a platform for long term process improvements.

In my travels across Aust i see significant interest in eSourcing initiatives being used to lower the cost of goods sold. A strong dollar and strong global trade means that sourcing from Asia and Eastern Europe has never been better value.

All retailers looking for better sourcing for their products should in my opinion look at SaaS based esourcing as a winning solution in these hard times.