LOJAS COLOMBO: GOOD SERVICE IS THE FOUNDER’S LEGACY

Expanding in the four states where it operates, the chain reinvests all results in the operation and ensures sustainable growth.

A small establishment in the city of Farroupilha (RS), where Adelino Raymundo Colombo sold and repaired home appliances, was the beginning of the chain. It was 1959, and the arrival of television in Brazil was a milestone that developed local retail and opened space for new businesses. Adelino opted to take the first devices to the potential buyer’s house, a door-to-door job, which even enabled him to expand his store’s portfolio, to which he added refrigerators, radios and sewing machines.

He was a forerunner of personalized service, he realized that it was a differential for the business and made it a commitment that was assumed by thousands of employees who participated in the trajectory of Lojas Colombo, the largest retail chain in the south of Brazil, with 304 stores in the states of Rio Grande do Sul, Paraná, Santa Catarina, and Mato Grosso do Sul. Its billing forecast, in 2023, is BRL 2.6 billion, compared to the BRL 2.3 billion registered in 2022.

With an average annual growth of over 10%, Lojas Colombo S.A. has more than 4,200 employees and is part of a group that also includes Crediare S.A. – Crédito, Financiamento e Investimento, Farroupilha Administração de Consórcios Ltda., and Colombo Motors. “We are a consolidated brand, built on pillars that give us consumer confidence. We have a differentiated service, backed by the permanent search for better experiences for our customers and employees”, says president Carlos Eduardo Colombo, in this interview for Eletrolar News.

by Leda Cavalcanti

How do you evaluate the 64 years of operation of Lojas Colombo?

Carlos Eduardo Colombo – We are the largest electronics-furniture retail chain in Southern Brazil, an achievement that makes us proud and motivates us to build in the coming decades. However, we are humbled to understand that we are not better, our market has very competent players, and this strengthens Brazilian retail. Participating in this competitive environment drives us to always evolve, through the commitment to maintain our culture and work for the social and economic development of our communities.

Which decade was pivotal for the network?

CEC – The 1970s marked one of the most important moments for the company, with investments in consumer credit, which increased accessibility to the products desired by customers and expanded operations throughout the interior of Rio Grande do Sul. In the next decade the chain conquers the heart of the “gauchos”, with the arrival in Porto Alegre. Packed by the great acceptance, it expanded markets, advancing along the borders of the states of Santa Catarina and Paraná.

When did the brand nationalization process begin?

CEC – In 1999, with the launch of e-commerce. A pioneer in the region, www.colombo.com.br has become an ally in terms of convenience, ease, and customer satisfaction. For the business, an important instrument for strengthening the brand’s presence and recognition among other audiences, not yet served by the available physical structure. Throughout the period, Lojas Colombo was adapting to market demands and working to offer new solutions to its consumers.

How is the structure of Lojas Colombo?

CEC – Our company follows the legacy of the founder, maintaining its family characteristics. Investors are family members; they belong to the second generation. Business management, however, follows the precepts of corporate governance, with a board of directors made up of market professionals, specialized in retail. Our executive board has career professionals forged in the day-to-day and in the particularities of the segment. As president, I am responsible for perpetuating the inherited values and preserving the solidity of the company, fulfilling the mission left by my grandfather.

How do you define the identity of the network?

CEC – Lojas Colombo’s identity is closely linked to examples of simplicity, humility, and concern for our customer’s experience. Therefore, I created the method we call HSB, a reference to these values and our way of doing what is basic but delivering excellence. Good work derives from simple formulas, and that is what we pursue with the same constancy and conviction as in the early years. At 64 years old, we can say that we are much more than a family business, we are all one big family, each day more united by the same purpose.

Does the chain operate in street stores and shopping malls?

CEC – Currently, we have 304 stores in the states of Rio Grande do Sul, Santa Catarina, Paraná, and Mato Grosso do Sul. We have two distribution centers, in Curitiba (PR) and Nova Santa Rita (RS), in addition to five warehouses. Our headquarters are still in Farroupilha (RS). We have stores in shopping malls, however, most of our units are in streets in large centers and with retail concentration in the countryside.

In terms of stores, what is the chain’s vocation?

CEC – We are a company that invests and believes in people. That’s why the format of neighborhood stores proved to be our vocation. We are always looking for ways to be closer to our audience, and this drives us to expand our physical presence, targeting communities further away from large urban conglomerates. It is also our way of benefiting cities where options are limited. We take options through our wide mix, affordable conditions and payment methods, fair price, and the best service.

Do they all have the same pattern?

CEC – Our stores have an average size of 600 sqm of exposure and follow a standard that respects the particularities of the local market and the needs of customers. The layout is developed in such a way as to value the products, with the greatest rationalization of spaces, without losing the atmosphere and the reproduction of inspiring environments. We have stores in cities of all sizes, from city capitals and metropolitan areas to the interior of the states..

What products do they offer?

CEC – We are, essentially, a chain of home appliances, electronics, and furniture, however, with the adoption of the marketplace, we have significantly expanded the portfolio and now offer toys, perfumery, automotive products, bed, table and bath, among others. There are more than 100,000 items that can be found in stores or in a simple click. In representation, home appliances are in first place, followed by furniture and electronics.

What is the importance of sales in the online channel?

CEC – We launched Colombo.com.br in 1999, a time when electronic commerce was still in its infancy. The pioneer spirit made us explore the new channel, overcome barriers, and learn from daily experiences. Thanks to this, our digital maturity arrived early, and the channel became relevant for the company, reaching a representativeness that exceeds 20% of revenue. An important ally during the pandemic, e-commerce represented and still represents opportunities, including the marketplace operation. The best-selling products are home appliances and furniture, following the example of the chain’s general sales.

What revenue does the chain expect for 2023?

CEC – This year, we should reach BRL 2.6 billion. In 2022, revenue was BRL 2.3 billion.

Is it important for the network to have its own funding?

CEC – We have our own finance company, Crediare, which makes credit accessible to our customers. Our credit card is flexible, composing installments and amounts according to individual needs and consumer preferences. We understand that ensuring this access is crucial to strengthening relationships.

What is the differential of Colombo?

CEC – We are a consolidated brand, built on pillars that give us consumer confidence. We have a differentiated service, backed by the permanent search for better experiences for our customers and employees. We are active in the communities that host us, we actively participate in socioeconomic development, and, above all, we believe in transparency as a driver of lasting relationships.

Is the so-called price war important for sales?

CEC – Our focus is to meet the expectations and aspirations of our customers fully and smoothly. This in a simple and agile way, because we understand that this is what the consumer expects. Doing the basics with excellence promotes rapprochement and generates credibility. All of this neutralizes the effects of a possible price war, especially as we work to deliver a fair price that makes sense for everyone involved. This is the only way to maintain the financial health of the business and generate win/win results.

Is multichannel essential?

CEC – The new behaviors and the growing demands of consumers, who are more informed and exposed to the shortage of time, make retail advance towards offering convenience and facilities. Multichannel corroborates this new scenario, making it indispensable. Offering products and services without being limited to physical spaces and hours gives the retailer a degree of competitiveness and meets customer expectations. At Lojas Colombo, the transformation process was quite natural, following the rhythm of these expectations and the investments in modernization, necessary for the development of the business. We made progress in the omnichannel process, connecting the different channels to provide the conversion of the experience. As a result, our customers benefit from purchasing online and picking up products at the nearest point of sale, within two hours. This is an example of how ease gains space in the face of multichannel.

Are there plans to open stores in other states?

CEC – We are in a moment of full expansion in the states where we already have stores. In March of this year, we arrived in the state of Mato Grosso do Sul, where we opened two stores: Eldorado and Mundo Novo. This is a new market, and we have high expectations. In addition, we still have plenty of room to advance in the South. Last August, we opened stores in São João do Ivaí and Andirá (PR) and in Serafina Corrêa (RS).

How does Colombo operate in logistics?

CEC – We have made large investments in the logistics process in recent years, modernizing the fleet, expanding DCs and applying management tools. Today, we have 180 own trucks and hundreds of partners, who carry out more than 161,000 deliveries per month. To improve and speed up deliveries, we are starting operations in the largest logistics park in Rio Grande do Sul, in Nova Santa Rita, in an area of over 30,000 sqm. In addition to the modern design, the center offers fluid access for trucks, security and technology focused on transportation.

Is it difficult to retain the consumer today?

CEC – We are committed to quality service, relationships, personalization and respect for the needs and aspirations of each client. We offer the possibility of choosing channels and ways of buying, understanding that this complementarity is decisive in the consumer’s journey.

How do you evaluate the current retail situation?

CEC – Retail is very sensitive to market instabilities, and the moment is challenging. The retraction in confidence, indebtedness and uncertainties in the economy put a brake on consumption and, therefore, hold back investments. Brazilian retail is very resilient, and this characteristic is essential to overcome adversity. I understand that a new phase is starting, bringing good opportunities. As the largest Brazilian employer, the retailer is an engine of the economy, and this position will continue to be occupied by it, even experiencing the consequences of high taxation and competition with the international market.

Will 2024 be a year of investments? In which areas?

CEC – We plan to continue investing in the way we have historically done. Our company reinvests all results in the operation, and this guarantees us sustainable growth. We are always mapping the areas that require attention and, in recent years, we have made important investments that, although fragmented, narrow to a more expressive values into logistics and IT, thus guaranteeing actions aimed at better serving our customers.

What is your expectation for this end of year?

CEC – We are optimistic about sales. The last quarter always presents decisive results for retail, especially in our segment, and this should be repeated in 2023. We are preparing ourselves with supply, structures, and processes, aiming at a growth of more than 10% compared to last year. We bet on technology-oriented products, which are always in great demand on Black Friday, but we have not forgotten that people associate the end of the year with renovation, and the home is the refuge, so furniture and decor will have a prominent place.

Does Colombo have actions aimed at sustainability?

CEC – Our actions take place on all fronts. We understand the business and its continuity with all its social function (job and income generation), employee well-being, customer needs, benefits for communities and environmental impacts. Everyone receives attention, with plans focused on each of the themes, unfolded in practices that aim at the future and the safety of the new generations. As an example, we can mention corporate governance, social inclusion, environment and health committees, donation actions and incentives for volunteer work, among others.

Source: Eletrolar News Magazine 156
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