After buying Camicado Renner gains competitor
DCI
After the acquisition of Camicado by the clothing retailer born in the South, Renner, the purchaser, already sees the competition increase, because the negotiation is already born with a competitor: that of the Camicado family, which sold only the stores aimed at the public of classes A and B, but stayed with seven stores located in the region of Rua 25 de Março, in downtown São Paulo. Those units should receive investments after the sale of 27 stores for R$ 157 million (US$ 98.1 million). The idea now, apparently, is that the family will continue selling the same products in the units that have not being included in the deal with Renner, and both the companies will now feature products also for classes C and D as well. The decision should be confirmed on May 4, after the analysis of the shareholders.
"The family that owned the Camicado chain should adopt another name for the remaining stores and continue with the business," says the partner of Tozzini Freire Advogados, Mauro Guizeline, who advised the purchase. To move on with the growth, the director of the consulting firm Naxentia, Miguel Abdo, believes the Southern brand should follow the trend of the European retail brands and operate in different segments hereafter. "In case Renner has the opportunity of purchase it may operate in furniture and home appliances and start gaining the market of such multi-format, following in the footsteps of companies like Casas Bahia", emphasizes the Director.
The Camicado chain, with 27 stores, should have 101 in 2015 and 125 in 2020, despite the increase, Lojas Renner sees the estimate as "conservative". The newly acquired company should be a priority in the next six months and it should grow both with the opening of new units and through sales in the current stores, since current stores have the potential to increase their sales from 30 to 40%, according to the Managing Director of Renner, José Galló. "It was a well-run company, but it wasn't taking advantage of its growth potential. The shareholders did not have so much vigor to grow anymore", said Galló on a teleconference.
The CFO and Investor Relations Officer of Renner, Adalberto Santos, explained the growth plan of Camicado in five years leads to an estimated of an average growth of 15% a year. Although he does not rule out the possibility of opening street stores, Galló said the malls will be the main vector of growth of Camicado. Renner did not inform when the card of the brand will be accepted in the Camicado stores, but Galló noticed the implementation should take the time required for the integration of the systems. Currently, 60% of the sales of Camicado take place through credit cards, while the rest is divided between debit cards, checks and cash.