Casas Bahia launch virtual store and increase competition on the web
O Estado de S. Paulo - 02/03/2009
Yesterday Casas Bahia launched its virtual store, increasing the retail competition of the Brazilian internet. The largest retail chain of home appliances, electric and electronic devices and furniture expects to sell nearly R$ 280 million (US$ 121.7 million) this year on the web, which is equivalent to nearly 2% of profit of the entire retail chain. "The expectation is very real", affirms Michael Klein, executive officer of the store chain. "In 10 years, we want to have 20% of everything sold through electronic commerce in the Country. Last year, virtual retail grew 30%, according to the preliminary data of E-Bit, reaching R$ 8.2 billion (US$ 4.48 billion). For 2009, the growth forecast is from 20% to 25%, taking into account the effects of the crisis. That will cause the volume sold to exceed R$ 10 billion (US$ 4.35 billion) for the first time. Today, B2W, which gathers Submarino and Americanas.com, is the biggest group in virtual retail. In October 2008, virtual retailers gained a heavy-weight competitor, with the starring of Wal-Mart in online sales in the Country. From the large store chains that work in Brazil Carrefour is the only one that still makes no sales through the internet. Pedro Guasti, general director of E-Bit, pointed out that the entrance of a company like Casas Bahia in the electronic commerce increases the number of virtual consumers. The strong sales of computers in the last two years were one of the factors that made Casas Bahia launch its virtual store. Another factor was the increase of the number of credit cards among its clients. In January, the retail chain reached 5.7 million cards of its own, issued in partnership with Bradesco. Besides that, the company wanted to have a safe and, at the same time, user friendly website. R$ 3.7 million (US$ 1.62 million) has been invested in the virtual store.