PRESIDENTS SPECIAL – RETAIL – NEW CYCLE IN 2024
The numbers indicate that the greater stability of the market, a consequence of a series of factors, including the reduction in interest rates, will be a stimulus for sales growth.
by Leda Cavalcanti
The year 2024 brings good prospects for the country’s companies, which are represented in this Presidents Special. Some news, such as Brazil’s return to the list of the 10 largest economies in the world, the gradual reduction in interest rates, expected to reach 9.5% by the end of 2024, the approval of the first tax reform in more than 30 years, the control of inflation and the increase in the number of jobs, give a new boost to the economic scenario.
There is pent-up demand and a fearful consumer. The recovery will be slower and with regional variations, but the important thing is that the prospects are a stimulus for companies, especially considering the good results of retail at the end of 2023. The real increase in the minimum wage, although timid, paves the way for the fall in debt and anticipates a cycle of replacement of household appliances and electronics.
As important as reducing interest rates to make the economy move and attract investment is the preservation of a fiscal responsibility plan by the government and measures to increase the State’s efficiency. A sign of the country’s maturity would be less polarized and more patriotic coexistence between congress and government to enable the adoption of structural and bureaucratic reforms, important keys to economic growth.
AMAZON BRASIL
Daniel Mazini, president
Amazon is committed to always serving its customers with excellence, says its president, Daniel Mazini. “To this end, our focus is on having the widest possible variety of products, from the most diverse categories, for different tastes and spending possibilities. Last year, we further expanded our payment options, with the launch of Amazon.com.br and Amazon Prime credit cards. We are growing above expectations, and the beginning of the year is being very positive for us. We expect this growth to continue in 2024.”
“We see the mobile channel (purchases via cell phone and the Amazon app) growing, customers are more comfortable making their daily purchases on e-commerce.”
In July 2023, on Prime Day, the company recorded 50% more sales than the previous year. It was its biggest sales day since its launch in Brazil. Amazon Brazil’s Black Friday was a positive surprise, reaching 60% growth compared to the 2022 event. “We see the mobile channel (purchases via cell phone and the Amazon app) growing, customers are more comfortable making their daily purchases on e-commerce”, says the president.
Greater control over inflation and a reduction in interest rates make the retail business more predictable, says Daniel. “This helps with long-term plans, which are the focus of our culture. There is still a lot of room for the growth of e-commerce in Brazil and we are convinced that customers will continue to be captivated by the ease of finding items, the convenience of receiving them quickly and the possibility of resolving any post-purchase issue in the same way as easy as possible. These are areas of focus for Amazon.”
BEMOL
Marcelo Forma, financial director
The year 2023 was challenging for electronics retail, says financial director, Marcelo Forma. “Consumption was impacted by limited consumer purchasing power, resulting from the almost non-existent disposable income and the high level of household debt. Inflation persisted at levels above the target established by the Central Bank, and the interest rate remained close to 14% per year. In this scenario, we implemented revisions to our credit policy to contain the growth in defaults, and financial expenses had an impact on our results. Despite this, we grew 10% compared to 2022.”
“Our plans include investing in the opening of new stores in the states of Amazonas and Roraima, as well as expanding our financial services offering, including secured and unsecured personal loans.”
For 2024, there is optimism. “We have already seen improvements in default curves and positive signs of a reduction in interest rates. Our plans include investments in opening new stores in the states of Amazonas and Roraima, as well as expanding our range of financial services, including secured and unsecured personal loans”, says Marcelo.
The company also intends to emphasize its e-commerce, says the director. “We plan to implement a new technological platform that will enable the incorporation of several functionalities, such as order orchestration, greater fluidity in omnichannel and an improved shopping experience for customers. We will also expand our regional marketplace, aiming to multiply the number of participating partners by 10. With the implementation of these actions, Bemol expects to achieve growth of 12% this year, exceeding revenues of BRL 4 billion.”
GAZIN
Gilmar Alves de Oliveira, president
“We are optimistic for 2024, even considering that we will have a high interest rate, a credit crisis and concerns related to default”, says the president, Gilmar Alves de Oliveira. “However, due to Gazin’s financial strength and primary focus on Agro regions, coupled with our ability and experience in offering long-term credit to customers, we believe it will be a year of growth.”
“In 2024, our aim is to strengthen cash flow, optimize operational expenses, carry out strategic negotiations with our suppliers, keep the team motivated and engaged, introduce new products, and reinforce our sales campaigns.”
The company, whose sales channels show the greatest expansion are retail and wholesale, plans to grow 12% this year compared to 2023. “It was a year of exponential growth. In 2024, our intention is to strengthen cash flow, optimize operational expenses, carry out strategic negotiations with our suppliers, keep the team motivated and engaged, introduce new products, and reinforce our sales campaigns”, says the president.
In Gilmar’s opinion, a lower interest rate, exchange rate stability, balanced inflation and an improvement in the unemployment rate are relevant points to boost retail performance. “Reducing the interest rate is fundamental, as it brings conditions and resources that can boost the sector.”
GRUPO ZEMA
Romero Zema, CEO
In 2023, retail in Brazil faced a series of challenges, the main one being the distrust of the financial system towards large retailers, says the CEO, Romero Zema. “This directly impacted our credit lines. Despite everything, we managed to achieve our 15% growth objective. For 2024, we expect growth of 12% compared to the previous year.”
“Among the actions planned for this year is the increase in the group’s marketplace. We will encourage the entry of new sellers, focusing on our region of operation. We believe that this is the channel that will see the greatest growth.”
Among the actions planned for this year is the expansion of the group’s marketplace. “We will encourage the entry of new sellers, focusing on our region of operation. We believe that this is the channel that will have the greatest growth”, says Romero.
To stimulate the segment, the CEO of Grupo Zema considers essential to reduce the interest rate along with the level of unemployment, which will contribute to increasing the average income of consumers. “Certainly, these two measures will be largely responsible for the recovery of retail.”
KALUNGA
Hoslei Pimenta, operations and sales director
The expectation for 2024 is for growth in revenue volume of between 7% and 10% compared to 2023, says Hoslei Pimenta, director of operations and sales. “Although we ended 2023 below initial projections, it is important to highlight that we achieved positive results. We recorded 3% growth compared to 2022, consistently maintaining our margins and implementing improvements. We are confident that the lessons learned in 2023 will provide us with a solid foundation for continued success in 2024.”
“The fall in interest rates not only reduces financial costs for companies but also stimulates a virtuous cycle of economic growth.”
This year, since classes began, the company has adopted a proactive approach. It offers installments in up to 12 installments and promotes the campaign “Your used notebook is worth a discount”, says Hoslei. “We collect used paper and, for each kilo, we offer R$ 1.50 discount on the purchase of new notebooks and bond paper. So, we provide adequate disposal for recycling and contribute to environmental protection.” It will also increase the supply of private label products manufactured in its industry, Spiral, and those imported directly, giving strength to phygital, a channel whose sales grew 30% in 2023.
In the economy, Hoslei says that, without a doubt, the reduction in the cost of money has a significant impact on the sector. “The measure allows for the expansion of investments, directing income to production. This generates more employment opportunities, increases disposable income and boosts consumption. The fall in interest rates not only reduces financial costs for companies but also stimulates a virtuous cycle of economic growth.
LOJAS BERLANDA
Nilso Berlanda, president
The company closed 2023 with 15 store moves, including openings and reopenings, says the president, Nilso Berlanda. “We invested R$3 million in expansion and R$1 million in technology to improve our customers experience and increase operational efficiency. We had an increase of more than 10% in sales compared to 2022. In 2024, the expectation is to reach 200 units in the first half of the year, continuing the expansion plan.”
“The projection, this year, is to increase investment by at least 10% in relation to what was invested in 2023. This value could be higher if the market heats up over the months.”
Other important projects are under development. “The projection, this year, is to increase investment by at least 10% in relation to what was invested in 2023. This value could be higher if the market heats up over the months”, says the president.
There is confidence in the economy, highlights Nilso. “The drop in unemployment can be a very important factor for the development of retail. More people working means increased purchasing power. Lower inflation and lower interest rates contribute to increasing purchasing power and, consequently, boosting retail. This set of factors leads to a more stable economic scenario and significant growth, which will enable companies to invest even more in expanding and offering products and services.”
LOJAS CEM
José Domingos Alves, STORE MANAGER
The balance for the year 2023 is made by the store director, José Domingos Alves. “We had a very disappointing first quarter last year, a small improvement in the second quarter and a good recovery in the last two quarters. We closed the year with good growth. We started 2024 better than last year, and the forecast is to maintain growth above double digits. In terms of revenue, the expectation is to exceed R$8 billion.”
“Among the main initiatives planned for this year are the opening of 10 new stores and the renovation of 25 branches. We will also continue with all the commercial actions that are already part of our annual program.”
Among the main initiatives planned for this year are the opening of 10 new stores and the renovation of 25 branches. “We will also continue with all the commercial actions that are already part of our annual program”, says José Domingos. The company operates in a single channel, physical stores.
In the economic sphere, the director hopes for measures that can create jobs, improve income and maintain control over inflation. “Without a doubt, the reduction in interest rates will contribute a lot. These measures will bring security to workers, especially the working class, which is the largest group of consumers in our company.”
LOJAS CERTEL
Erineo José Hennemann, president
The year 2024 will be one of significant transformations for retail, where, despite economic uncertainties, there are positive market prospects, says president Erineo José Hennemann. “In the face of all these transformations and consumer demands, proud of our history and ambitious to boost lives and communities, our focus will continue to be on relationships and quality service, which have always been our main differentiators.”
The company understands that these relationship and service differences are ways to win over consumers and overcome competitiveness. “We focus on the customer experience, with emphasis on the price factor”, explains the president.
“We understand that relationships and service, our main differentiators, are ways to overcome the competition. We focus on the customer experience, with emphasis on the price factor.”
For 2024, the projections are positive, says Erineo. “We are a company made by people and for people. Expectations are for growth in revenue, providing, through e-commerce and the 37 stores and service points, actions and projects aligned with the group’s purpose, in order to generate results in multichannel service.”
LOJAS COLOMBO
Eduardo Colombo, president
The year 2023 was one of growth, given moderate expectations, says the president, Eduardo Colombo. “Permanent and detailed monitoring of costs was crucial to preserve profitability. Our organic expansion plan followed the plan and allowed us to expand the market. In 2024, we will continue investments, structured by our productive potential, rationalization of resources and attention to consumption movements. We expect to grow in revenue and reach.”
“In 2024, we will continue investments, structured by our productive potential, rationalization of resources and attention to consumption movements. We expect to grow in revenue and reach.”
In the company, the channel with the greatest growth is physical, says Eduardo. “We expanded the base of points of sale and evolved in existing stores, without neglecting the strength of e-commerce, which extends our operations throughout the country. We will act in the singularities of each channel, nurturing their potential, which will lead us to a consistent performance in results. In 2024, we celebrate 65 years and we will celebrate in a way that immortalizes the wishes of our founder, Adelino Colombo. We will continue the way retail should be, operating with simplicity, doing the basics in the best way possible.”
In the economy, the president defends the reduction of interest rates to increase the supply of credit, encourage consumption and help restore consumer confidence. “This year brings new opportunities. The expectation is that the national economy will maintain its stable growth rate, that the necessary reforms will advance and the costs of the public sector will be controlled. Thus, there will be investments in the productive sector, and the economy will strengthen.”
LOJAS EDMIL
Adaoney Pereira Valias, president
The company is confident and optimistic about 2024, says the president, Adaoney Pereira Valias. “Our objective is to grow revenue by around 12% compared to 2023. Last year, we achieved our goals and objectives, with growth of 14.5% compared to revenue in 2022. It was a positive year with many achievements .”
“In 2024, we will revitalize some stores, open two new ones and strengthen our presence in cities where we do not have a physical unit, but which are within our operating region. We will invest in technology and innovation.”
This year, the chain will revitalize some stores, open two new ones and strengthen its presence in cities where it does not have a physical unit, but which are within its region of operation. “We will continue to invest in our online channel to increase brand visibility and increase sales throughout the country. It was the one that grew the most in 2023, but our greatest strength and focus are on physical stores. We will invest in technology and innovation”, says Adaoney.
Regarding the economy, the president of Lojas Edmil highlights what he considers important for the segment: “We need to continue recovering consumers’ purchasing power, reduce interest rates, which is fundamental for the retail sector, and advance in tax reform.”
LOJAS LEBES
Otelmo Drebes, president
The company’s assessment of 2023 is a year that needed more stability and, in the end, there were fewer surprises than imagined, says the president, Otelmo Drebes. “There was a big error on the part of economists in relation to the GDP projection, they predicted something around 0.5%, but in reality we reached a number very close to 3%. In short, it was an atypical year, but, overall, a good one. In 2024, we expect an increase in revenue of around 11% or 12%.”
“In 2024, we plan to renovate at least 50 stores, open five to 10 new physical units and increase the fashion area in the express concept branches.”
The focus remains on improving stores to provide a better shopping experience. This includes everything from the exhibition and layout to the product mix and digitalization, offering even more facilities to the customer. “In 2024, we plan to renovate at least 50 stores, open five to 10 new physical units and increase the fashion area in the express concept branches. I believe that sales via the internet are very close to the limit and what will continue to grow is sales in physical locations. Of course, always working on service and digital to improve the in-person shopping experience”, says the president.
Improvements in the economy depend on stability, which allows entrepreneurs and companies to plan for the future, says Otelmo. “In this sense, it is essential to reduce the interest rate. When inflation is expected to be close to 3% with the possibility of an interest rate, according to some economists, of around 8%, the prospect of investment and, consequently, growth in the sector increases.”
LOJAS KOERICH
Eduardo Koerich, commercial director
This year is full of expectations, driven by the work and results of 2023, says commercial director, Eduardo Koerich. “We project to grow 10% compared to 2023 performance, based on our values and relationship with communities. Last year was one of growth, driven mainly by white goods and air conditioning. The strong heat between September and December boosted the sale of these products and boosted white goods in refrigerators. Washer and dryer performed well even due to the heavy rains that the state of Santa Catarina faced. Sales volume increased satisfactorily.”
“In 2023, we made an audacious expansion plan, with 10 new stores, and, at the end of the year, we opened our marketplace. In 2024, we are moving towards entering other platforms.”
This year, Koerich continues to focus on expanding the megastores market. “In 2023, we made an audacious expansion plan, with 10 new stores, and, at the end of the year, we opened our marketplace. In 2024, we are moving towards entering other platforms, as was the action on Mercado Livre, which has also been contributing to the growth in sales volume”, says Eduardo.
The retail is optimistic this year, especially in relation to macroeconomic issues and the reduction in interest rates, enabling consumers to have greater credit power to purchase, says the director. “Reducing the interest rate is important, however we also know that we have to play our role and develop increasingly assertive strategies to guarantee a promising result even in adverse scenarios.”
MARTINS ATACADO
Rubens Batista Junior, general-director
For distribution in general, 2023 was very challenging. This is the opinion of Rubens Batista Junior, general director of Martins Atacado. “We deal with factors such as credit shortages (Americanas effect), high interest rates, consumption affected by consumer debt and reduction in product prices due to deflation and trade down. This affected sales performance. In electrical appliances, the drop in sales was in the 1-digit range, with a certain sacrifice in margins. In 2024, given the fact that we are reducing some categories whose margin makes distribution impractical, we plan not to grow. When we exclude these categories, the performance is higher than in 2023.”
“In 2024, the focus is to work more assertively on channels with adequate mix and pricing, accelerate 3P, specialize the sales force and be careful with profitability.”
The fact that last year was challenging led the company to be surgical in evaluating categories, channels and regions. “The positive effect is that in 2024 we are focused on working more assertively on channels with adequate mix and pricing, accelerating 3P (the model in which suppliers become sellers), specializing the sales force and being careful with profitability”, says Rubens.
The company’s business is dependent on income, of employment and credit, says the general director. “The short-term scenario remains challenging, marked by high interest rates, high household debt and low growth. However, there is some optimism when comparing 2024 to 2023. We are cautiously optimistic for the second half of the year. Such a scenario will demand a lot from the manager in terms of analysis, prudence and articulation of quick responses.”
NOVOMUNDO.COM
José Guimarães, CEO
The NovoMundo.com team is confident about 2024, says José Guimarães, CEO of the company. “Our strategic plan foresees growth in total sales of 8%. Maintaining the same focus as in 2023 and the same pace of increasing profitability and productivity, we expect consolidation in the regions where we operate.”
“Our strategic plan foresees growth in total sales of 8%. Maintaining the same focus as in 2023 and the same pace of increasing profitability and productivity, we expect consolidation in the regions where we operate.”
The consolidation of the omnichannel model adopted by the company, integrated with its solutions platform, Novo Mundo Resolve, remains the total focus of the strategy for 2024. “This means having even more relevance in the daily lives of our consumers, creating a bond of relationship and trust stronger”, says the CEO.
For consumption in Brazil to return to more significant growth, measures aimed at increasing consumer confidence are necessary, believes José. “This requires, in general, an increase in employment and income, in addition to reducing family debt. Without these initiatives, even with a decrease in interest rates, the economy will remain on the sidelines. For this reason, we continue to accelerate our differentiation strategy to gain share. Well-defined strategy, great plans, and an engaged team to ensure execution. This is NovoMundo.com’s recipe for 2024.”
TELHANORTE TUMELERO
Jordana Barros, COO
To talk about expectations for 2024, it is necessary to present some facts that occurred in 2023, says Jordana Barros, COO. “Over the past year, we have sought to strengthen our core business and invest in new store models, adjusted to the demands of different audiences, with the introduction of compact home centers in the interior of the states of São Paulo and Rio Grande do Sul, and of boutiques focused on high-end finishes. In this way, we expand our market coverage and supply capacity.”
“We are sure that the year will be more promising, with clear growth levers. We have challenging goals set for the business and we are all very committed to achieving them.”
In 2024, the company will continue to invest heavily in these pillars, in addition to offering new products and services and improving the service model, from self-service to assisted technical sales, including strengthening multichannel. “We are sure that the year will be more promising, with clear growth levers. We have challenging goals set for the business and, certainly, we are all very committed to achieving them”, says Jordana.
Regarding the economy and the sector’s behavior in 2024, the COO states: “The reduction in interest rates and the increase in credit availability for our customers, in addition to new property deliveries, the acceleration of the Minha Casa, Minha Vida and the new cycle of repairs and renovations, anticipated by the pandemic, now in demand again, are factors that, together, should boost the development of construction materials retail.”
Source: Revista Eletrolar News – Edição #159
