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brazil report 2007

Companhia brasileira de distribuio cbd well known for

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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 parking zones. 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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