More than 1,560 employees, executives and entrepreneurs of the commercial sector participated in the annual event of the Association of Detail Trade (ACDET), in which the demographic changes of the market were presented, what are some of the global trends, as well as the operational challenges that the industry has.
Aware of population aging, the session “The old is gold was presented: hugging consumers of the future”, by Tatiana Irizarry Row, commercial director of the Nielsen market research firm.
Irizarry Rowa indicated that the population of older adults (65 years or older) represents one of the main consumer groups globally. The executive said in 2050, there will be 1.6 billion people in the world over 65 years.
In Puerto Rico, that population currently represents 25% of the total number of inhabitants. More importantly, according to Irizarry Row, it is the fact that los boomers They are the consumers who spend the most in the regions of Europe (26.5%) and North America (26.9%).
As the global population ages and countries increase the retirement age, there will be more older adults in the workforce, and also more those that consume and spend more.
Older adults spend more
According to Nielsen statistics, older adults spend 47% more than younger consumers.
And what do older adults buy in Puerto Rico? One of the main differences compared to the elderly globally, is that on the island, that population usually buy more home care products, such as detergents, sanitary paper, towel paper and aromatizers.
As for businesses, boomers They prefer chains like Econo and Walmart, and not so much, Sam’s Club.
José “Pepe” González, founder of the Pepe Ganga chain and president of ACDET, said he was pleased with the number of people attending the event, which, which He exceeded last year’s number and that was an assistance record, with 1,300.
“There are 1,568 registered people, that is more than last year. We are very happy because this is an event that has an educational part. We also project the problems of the industry and the private sector that we have to solve, ”said the leader of the commercial entity.
Logistics challenges
Another of the panels addressed the issue of the logistics and merchandise distribution process. Representatives of Walmart, Rooms to Go, Allied Logistics and Pepe Ganga explained the work of acquiring merchandise in the East and other parts of the world to reach Puerto Rico.
Jack Barlia, vice president of Rooms to Go, indicated that The journey of a cargo of furniture takes long weeksand the company does not control that process. The routes include several transford ports in which cars are consolidated and stop in different countries, prior to reaching the island. “That’s why when they ask me ‘where is the merchandise’, I have to say that we don’t know.”
For Ángel Alicea, regional general manager of Walmart Puerto Rico, The management of buying merchandise and anticipating demand is “a complex process, a nightmare (nightmare). It requires a rigorous processing process and data analysis. ”
Joanisabel González, Business Editor of The New Day, who moderated that logistics panel, asked how the arrival of the Amazon distribution center to the island or chains like Shein affects the operation of the chains in Puerto Rico?
The president of Pepe Ganga responded that to compete, his chain deals with buying the ideal merchandise at the right price, and thus offers the best offer to the consumer. “They force us to continue improving, you have to make investments in technology to continue growing. What is there is to be ready to improve,” added the businessman.
Meanwhile, Barlia de Rooms to Go, said his chain has a digital store, but “Our customers like to see, feel and touch the furniture”. He added that “we all have to innovate, but when we buy in Puerto Rico, that money stays in Puerto Rico. When we buy at Amazon it is not so; we all have to help us,” he added.
The master conference of the event was in charge of Dimas Gimeno, former former Executive Officer (CEO) of the renowned Spanish chain El Corte Inglés. In a separate one with the new day, the businessman indicated that he visualizes good opportunities so that more European concepts and chains can enter the island.
He said he took advantage of his first visit to Puerto Rico to take a tour of some of the shopping centers and was surprised to see so many US chains competing along with local shops.
“The shops here are very courageous, they are very resilient, and that is positive”Gimeno said, referring to how the sector faces the onslaught of hurricanes and problems with electricity, among other challenges.
ACDET, founded in 2010, today has more than 60 partnersbeing most of them, the executives of the US chains that operate in Puerto Rico.
