Exclusive by Patrick Avenell

The recent comments from Retravision store owners about the difficulties facing the smaller, independent retailers has prompted an enormous response from our readers – and many of them are not in agreement.

Rhys Betts from the Good Guys Tuggerah contacted Current.com.au this morning to give an opposing view. He used to work for Retravision, but left because of the inflexibility, and unrealistic expectations, he says are endemic in the organisation.

“Before my transition to a bigger retail chain, I did work for two Retravision stores, one of which closed down while I was still employed there, and the other which is now dying a slow death.

“It was not because of the bigger retail chains, it was because of the high profit margins some businesses expect to get from these stores.”

When asked to elaborate, Betts went further into detail, and explained why he got out of the Retravision system.

“When I first started with Retravision, I was told by the proprietor that between 25-30% profit was expected from every sale, and that was why I ended up leaving to go to another, bigger chain, store.”

Betts continued to say that due to the very high profit margin expectations at the store he worked, he was forced to explain any price discounting he made in order to achieve a sale. He derision was only enforced by the comments made by some of his former customers.

“You know it’s bad when a person walks into your shop and says, ‘your prices are higher than David Jones’.”

His advice to Retravision retailers is to accept the retail conditions in this country and work to overcome the challenges.

“The Australian retail market is one of the most competitive in the world, and from time to time we all need to accept the fact that a small profit margin some days, weeks, months or even years is to be expected.”

And if they don’t take this advice on board, Betts has a dire forecast for the whole group.

“Retravision needs to understand that id they don’t either start competing and join the big boys, they are going to be the next retail chain to go belly up, because it’s only going to get even more competitive out there.”

Do have something to say about this? Send me an email.