Valor Economico 02/06/2011 - Daniele Madureira
Marcos Samaha deployed in Brazil for accurate five months the overall policy of the world's largest retailer, Walmart, dubbed the "everyday low price." In practice this means that the network did away with promotions and began to adopt its lowest price possible product on the shelf. But the results were a little bitter in those first 150 days: one digit sales fell compared to the same period last year.
"Customers who find a lower price competition may, without bureaucracy, able to have the price covered the mouth of the box," says the chairman of Wal-Mart in Brazil. Today there are over 10,000 items within the program, which must be gradually extended to the entire mix. The executive attributes the drop in sales "to consumers floating, wandering from one shop to another in search of deals, but they are a minority in the network."
Its major goal is that in presenting the results of fiscal 2011 in February, Walmart Brazil is not mentioned in a derogatory manner. The company's board, the United States, already said he was disappointed with the results of the Brazilian subsidiary, which did not follow the group's performance (operating profit of the subsidiary in the fourth quarter fell 41.7% while the world went up 7, 3%). "Working day and night to not have to hear this one more comment," said Samaha, yesterday, to value.
Samaha ensures that it is possible reverse the decline in sales, and demonstrate to consumers that the commitment of Walmart with the lowest price, always, is more advantageous.
The network began an aggressive marketing campaign, which invited consumers to competing networks to make the same purchase at Walmart. Customer choice has been audited by consulting Unique. "He had said that consumers, shopping at Walmart, could save a salary per year," said Samaha.
policy of "everyday low price", which includes increasing the number of items from its own brand and strengthening partnerships with suppliers, would have brought some positive results, he said.
Yesterday at the annual meeting of officials from Walmart, held in Barnhill Arena, University of Arkansas (USA), Samaha said that since the practice was adopted, there was a 36% reduction in complaints about the product price (which varied due to the gondola promotion), and 3.9% increase in positive customer connections, praising the initiative of the retailer.
This year, the company will invest $ 1.2 billion to open 80 stores in Brazil, 60% of them with the flag All Day, neighborhood store, and Maxxi, wholesaler. Almost two thirds of the stores will be opened in the Northeast. This is a new position, with special attention consumers in the C, D and E.
The movement between Sugarloaf and Carrefour, Samaha says it will not "buy market share" at any cost. Walmart came to hold talks with Carrefour, two years ago about a possible sale of the French operation in Brazil. "Each of our acquisitions is highly evaluated," says the executive, who complains about the price of retail chains. "It's all very inflated in Brazil."
This year, the company will invest $ 1.2 billion to open 80 stores, 60% with the Flag Every Day, from neighborhood shop, and Maxxi, wholesaler. Almost two thirds of the stores will be open in the Northeast. Is the new focus of Walmart, returned to classes C, D and E.
The reporter traveled at the invitation of Walmart
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