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Unformatted text preview: procedures, some years ago
it launched a programme to develop small and mediumsized local suppliers, making them compliant with exports
through Casino, at that stage a minority shareholder of
CBD. 2006/2007 FROM SÃO PAULO TO SHANGHAI – New consumer dynamics: the impact on modern retailing* Moreover, the partnership with Casino, one of the
important global retailers, was also part of CBD’s strategy
to enhance its investment capacity, open new markets and
quickly improve global sourcing opportunities.
Updated information technology systems and
communication are of paramount importance to reduce
costs and improve the relationship with suppliers, since
traceability and agility transactions are of decisive help in
this area. Also, in the vanguard of technology applied in
retail industry, CBD has been investing on studies and a
pilot project on RFID/EPC (Radio Frequency Identification /
Electronic Product Code) technology. Developing credit and consumer purchasing
Another milestone and pioneer experience of CBD was
in financial and credit activities. Traditionally, retailers in
Brazil had operated credit for customers through their own
developed structure, managed by in-house resources,
using financial institutions as a vehicle if necessary.
In 2004, CBD decided to develop a new financial-credit
model which would permit focusing on its core business
retail activities and at the same time would optimise
and enhance the use of its customer base and flow by
partnering with a tier-one financial player.
Therefore, the new model was designed to enable
the organisation to be able to offer other financial
products traditionally unavailable at supermarket chains.
Accordingly, the organisation entered into a joint venture
with one of the most important financial institutions in
Brazil thus connecting the expertise in the development
of supermarket retail operations with the know-how of the
This initiative leverages business for both CBD and
the financial institution, improving the retail stores with
financial services and increasing purchasing power of
CBD clients. A set of corporate and tax structures was
developed and eventually allowed an appropriate balance
of interests setting up a joint venture between both parties.
After this transaction many other deals were concluded in
the Brazilian retail market, involving similar structures and
various retailer players in the supermarket, department
stores, furniture and home appliance sectors, among
others. Key takeaways
Over the years, CBD has been able to maintain its position
as a winner through innovative strategic development that
always remains one step ahead of the game. The secret of
its success lies in its ability to respond to consumer needs
through a variety of retail formats and broad geographic
coverage while simultaneously pushing its own growth
through external acquisitions and partnerships. 26 2006/2007 FROM SÃO PAULO TO SHANGHAI – New consumer dynamics: the impact on modern retailing* Case
Study II Wal-Mart in Brazil MAIN FEATURES
Wal-Mart Stores, Inc., is one of the world’s largest retailers, with $312.4
billion in sales in the fiscal year ending Ja...
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- Spring '08