Risk distribution – this topic has been close to the SABU managing director’s heart for years. As before, he says in an interview in this issue, too much responsibility lies with retailers. Too much goods are ordered too early and almost half of them are left at the point of sale at the end of the season because they are “wrong”. Krug explains that retailers cannot survive on sales of around 60% and points to better delivery capability, viable NOS strategies and adequate incoming costing. The lead times are also still too long. The industry needs to improve here.
The pressure on shoe manufacturers is currently particularly great. The number of dealers is decreasing. It is therefore understandable that the industry tries to fix orders as early as possible in the order round. On the other hand, retailers now have the opportunity not to give in to this pressure. In the interview, the SABU managing director also emphasized that the industry also needs to earn money, thereby rejecting any demands for exclusive accommodation from suppliers. Ultimately, retailers want good collections, marketing activities and service. All of this costs money. And Krug also takes the retail sector to task. Strong growth in the market is not expected in the coming years. At the same time, costs are rising. This means that retailers must invest in their operational excellence. Wherever possible, processes must be digitized and automated. Krug is convinced that this is the only way to really make tangible savings.
If the shoe industry is to have a successful future, both sides must move forward. It won’t work any other way.
