Industry veteran urges operators to focus on margins, inventory discipline, and cash flow resilience

CARACAS, VENEZUELA / ACCESS Newswire / January 16, 2026 / Retail operator and market analyst Ihab Abou Letaif is raising awareness around a growing but often overlooked issue in convenience retail and small-format stores: the erosion of margins and business stability caused by poor inventory discipline and slow decision-making in volatile markets.

Drawing on years of hands-on experience in high-inflation and emerging economies, including Venezuela and across Latin America, Abou Letaif is advocating for a renewed focus on fundamentals rather than growth-driven strategies.

"In unstable markets, retail does not fail because of a lack of demand," Abou Letaif said. "It fails because of weak inventory control, slow cash cycles, and unnecessary complexity."

Why This Matters Now

According to data from regional retail associations, small and mid-sized retailers in high-inflation economies can see real cash value decline by more than 30 percent annually if inventory turnover slows by just a few weeks. Studies also show that excess SKU variety can increase shrinkage and spoilage by up to 20 percent in convenience formats.

Abou Letaif notes that many operators still rely on playbooks designed for stable economies.

"Waiting for perfect data or long planning cycles does not work when prices change weekly," he said. "You have to think in weeks, not quarters."

Across Latin America, convenience stores are expanding rapidly, with some markets seeing annual growth rates above 10 percent. At the same time, supply chain disruptions and currency volatility continue to pressure margins, making operational discipline more critical than ever.

A Call for Practical, Ground-Level Action

Rather than calling for policy changes or large-scale reforms, Abou Letaif emphasizes actions retailers can take immediately within their own operations.

He encourages store owners and managers to treat shelves as financial tools rather than just display space.

"Every product has to earn its place," he said. "If it does not move, it is tying up cash and increasing risk."

He also stresses the importance of simplifying assortments, shortening supplier cycles, and prioritizing local sourcing where possible.

"Resilience comes from proximity," Abou Letaif added. "Complex, import-heavy models break first during volatility."

Lessons From Experience

Abou Letaif openly points to early mistakes in his own career, including overstocking imported products during periods of inflation.

"I believed demand would catch up," he said. "Instead, inflation and delays destroyed margins. That experience changed how I think about inventory forever."

That shift led him to focus on fast turnover, smaller orders, and constant review cycles, practices he now sees as essential survival skills for retailers operating under pressure.

What Retailers Can Do Today

Abou Letaif is urging operators, analysts, and retail leaders to take simple, independent steps:

• Review inventory weekly, not monthly

• Reduce slow-moving SKUs aggressively

• Shorten cash cycles wherever possible

• Walk through stores regularly to spot issues that data may miss

• Design systems that assume disruption, not stability

"Retail is not glamorous," he said. "But it rewards discipline. The basics, done well, protect businesses and jobs."

Call to Action

Abou Letaif encourages retail professionals to step back from expansion plans and trend-driven strategies and instead audit their fundamentals.

"Before adding anything new, ask if what you already have is working," he said. "Strong businesses are built by fixing small problems early."

By focusing on margins, inventory, and cash flow discipline, he believes retailers can build operations that survive uncertainty and remain viable long term, regardless of market conditions.

Media Contact:
Ihab Abou Letaif
info@ihababouletaif.com
www.ihababouletaif.com

SOURCE: Ihab Abou Letaif