Retailers invest US$ 1.1 billion in C and D classes
Folha de S. Paulo
The three largest supermarket chains in the country (Pão de Açúcar, Carrefour and Walmart) will spend one-third of the R$ 6.3 billion (US$ 3.5 billion) in investments announced for this year and 2011 to increase their businesses intended for C and D classes. Most of these R$ 2 billion (US$ 1.1 billion) will be used in the opening of stores and improvement of units that already catered to customers in such classes with family income between three and ten minimum salaries, according to the concept of the FGV (Getúlio Vargas Foundation). The stores will be modified to increase the offer of products and services.
By the end of this year, Walmart will open 50 TodoDia (retail) and Maxxi (wholesale) supermarkets, the most popular brands of the chain. In the first half of this year, six TodoDia and four Maxxi stores have already been opened in five States - RS, BA, PB, AL and SP (interior). "The emerging consumer has greater level of demand. He/she gets to the store informed about prices and brands. The chains are investing more in this consumer because they know s/he does not value only the price. That is why they invest in customer service, other services, in the decoration of the store and the variety of products", says Luiz Góes, from Gouvêa de Souza, a retail specialist.
In Grupo Pão de Açúcar, at least 30% of the R$ 1.6 billion (US$ 889 million) announced will be used to turn 150 CompreBem and Sendas stores, which are more intended for the low-income consumer, into Extra Supermercados. It is a neighborhood supermarket model with greater variety of "daily" products, such as the bakery and meat products. Even though more compact than a hypermarket, the stores should offer more services, such as space for coffee and pre-paid cell phone recharge at the checkout. The appearance will follow the standard of the hypermarket of the chain. "The low-income consumer is more mature, with more cash available, but he/she doesn't want to pay more for luxury", says Hugo Bethlem, Executive Vice President of Grupo Pão de Açúcar. "In our surveys, such consumer showed he/she intends to buy at Extra. That's why, at Extra Supermercado, he/she will see a greater offer of perishable products such as vegetables, breads, yogurts and frozen items".
Carrefour does not say how many of the 70 stores it intends to open until December are intended for the low-income class.
The group has invested in the increase of the services. After listening to the consumers in the My Store project, it will improve 20 old hypermarkets that catered to consumer in classes B and C. "The consumer asks us more options at the food court and space for a health club near the hypermarket. These are some of the changes that are about to come", says Christophe Villechanoux, of Carrefour.