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Unformatted text preview: maintaining its position as leader through an intelligent multiformat strategy as well as an aggressive habit of acquiring competitors.
A long-standing multi-format strategy Customer service Founded in 1948, CBD’s recent history of impressive
growth has been underwritten by one of the owners of
the company, Mr. Abílio Diniz, an entrepreneur of great
prestige in the Brazilian retail industry. CBD became a public company in 1995 and was the first
Brazilian retailer listed on the New york Stock Exchange
(NySE). In this same year, it launched the first electronic
and delivery supermarket in Brazil, bringing to its
customers the access and e-commerce reality. Currently, CBD runs 558 stores in 15 states and 13
logistic distribution centres, covering about 1.5 million
square metres of retail space in the main cities in Brazil.
It employs around 63,000 people and is present in the
daily life of thousands of customers. CBD operates
through the following brand names: Pão de Acúcar (185
neighbourhood supermarkets), Sendas (66 neighbourhood
supermarkets), Extra (79 hypermarkets), Compre Bem (176
hypermarkets), and Extra Eletro (50 home appliance and
electronic goods stores).
As a leading company, CBD has over the past years
been in the vanguard of many trends like private label,
24 hours stores, etc. In the 70s it was the first retailer
chain to launch the hypermarket format, called Jumbo, in
the Brazilian market. At that time CBD’s foreign portfolio
included supermarkets in Portugal, Angola and Spain. Growth through acquisitions
The seventies were also marked by the expansion of
CBD through acquisitions in various states of the country.
In fact, since it started to grow with acquisitions, CBD
has never stopped buying out competitors, which was
particularly evident when many years later, the Brazilian
retail sector passed through its first wave of concentration.
This first expansion phase was followed in the 80s by the
introduction of new store formats like discount stores,
department stores and DIy stores. 25 CBD also innovated when it customised its delivery service
to the clients who normally “migrate” to the coast zone
in the summer vacation period. Connected by phone or
internet, clients may save time to rest and get together
with family and friends, avoiding overcrowded shopping
areas that are not exactly comfortable places in the high
season as a result of the high temperature and limited
In fact, customer relations have been part of CBD
core business and several actions have been taken
systematically to improve them. For example, the launch
of a private card, promoting meetings with customers, 24
hour opening stores, banking correspondents allowing
clients to pay their bills at the store as well as several
social responsibility initiatives and sponsoring of cultural
and sport activities. Supply chain management
On the supply management side CBD has been
permanently investing and, taking advantage of its sizeable
operation, has developed local suppliers that are able to
meet its quality specifications and logistic standards. As a
result of these procurement...
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This document was uploaded on 02/14/2014 for the course MBA MBA at SPSU.
- Spring '08