Monday , November 29 2021

"The sum of the two is better than individuality"


Been months & # 39; & # 39 Madness for partners; Cornershop and especially its co-founder, Juan Pablo Cuevas (JPC) and general manager & # 39; Walmart Chile, Horacio Barbeitos (HB). F & # 39; in September they formalized the acquisition & # 39; local enterprise & # 39; the most successful & # 39; the last time, that brought them "many snags". But both are very happy and are working to generate synergies that allow the full potential of & # 39; what has been called the business year.

What happened to the company after the announcement shopping?

-JPC: We were not prepared for the impact that it had. What we realize the most is all the attention placed. We have been invited to many places that we were not invited before. And the truth is that the transaction to be approved, so f & # 39; more practical terms, not much happened. We have worked and continue to work as everything remains & # 39; the same. Hopefully it will be approved soon and we can see the first fruits of & # 39; working together.

-HB: atypical been other acquisitions not only the company has made in the past, but other types of & # 39; companies. First we trade agreement, we had the opportunity to know each other as companies. In Enade Juan Pablo agreed that knows us, working and going into this marriage and I think in & # 39; that sense has been very positive, because in our first investment in Chile, it was D & S, acquire and then start operating. F & # 39; in this case we met and then we made the announcement of the acquisition. This second commitment & # 39; Chile investment b & # 39; more security, knowing us, since we started working synergies, the truth was very positive and would complement the value proposition. We soon realized that Cornershop need our stores and our supply chain to enable & # 39; take the last miles & # 39; Cornershop excellence and we need to complement our proposition & # 39; that is not only for sales service, but also after-sales service. I think there is a natural super stuff and had a commercial agreement gave us the opportunity to get to know each other before this nispeċifikaw. I think this has been a fundamental and there will be a good basis on how to fully grasp the future.

What happened in companies with notice?

-HB: It was positive. It helped a lot that knows us before. In fact, Juan Pablo, Óscar (Hjertonsson) and Daniel (Undurraga) were at the annual meeting of our shareholders in the last year when we were going through the exploration of the trade agreement. Inside Walmart Cornershop is considered & # 39; disruption, b & # 39; agility, good and that the sum of the two is better than individuality.

-JPC: us was tremendous news. People & # 39; inside was taken a bit of & # 39; surprise and to be honest with & # 39; some fears, but over time realized the tremendous opportunity it is to continue doing what we are doing b & # 39; independently and with the full support of & # 39; a & # 39; the largest companies in the world. People are super motivated.

As you see the e-commerce performance?

-HB: I believe that what is happening in & # 39; some geographical areas is that our proposal & # 39; in-store value, our proposal & # 39; pick-ups and add value Cornershop & # 39; that customer for home delivery in & # 39; 90 minutes is coexisting. When we see that the ecosystem works, remember that no future business, business is present. We have those options for customer today is much more informed and authorized and already adopted this way & # 39; purchase at present. So, what remains & # 39; for the future is to continue to grow.

-JPC: I think there are certain things that the customer always wanted and always wanted to, not as said x & # 39; anywhere the customer has changed and now must take everything home. I believe that anyone ever wanted to bring some sort of & # 39; & # 39 produced in; any circumstances to his home, only now with new technology and developments can be made. I also think it is very sure that what happens is that the consumer sends and what favors or chooses what companies should do, have to adapt to what the consumer prefers.

-HB: There is another very important concept that brought digital switchover, which is personalization. The business of retail, 50 years ago, was a person who came to one dog and one by one attendej. The self-service began mass that relationship with customers and now almost returned for a one-on-one. We will tailor to Adapting began to experience massive. These customer purchase options as he wants and even Juan Pablo says to send it, it is something that is causing disruption in retail that I think is a fantastic competition and customer.

S & # 39; type & # 39; synergies or work you could do together?

-JPC In the beginning, we tried this kind of & # 39; & # 39 something to do; everyone. We are always looking for efficiencies and optimisations to ultimately deliver better service. B & # 39; in particular, a year and a half we have been working together with & # 39; Lider, we try to move & # 39; forward, but premise – how to use the room – it does not interrupt customers, so we make enough improvements. So we're doing things, like trying to have a more appropriate assortment to customer consumption habits in & # 39; Cornershop, which is very important, because when people can shop from home or work or by car, m & # 39; longer restrictions of & # 39; in time I & # 39; other times. This makes the products start buying in & # 39; different times, then we agree on this type of & # 39; and how things work rooms.

-HB For example, when buyers come in & # 39; room and begin to "pick up" products, we must know at & # 39; real-time x & # 39; are the breaks of the stock, which we knew before at the end of the day. This is information at & # 39; real-time makes us react faster, products are faster in the sales room and we sell more, Cornershop sell more and supplier of & # 39; those products sell more . So I think there is much synergy there fast.

But then, one of the biggest challenges that retail is the peaks and valleys as said Juan Pablo, morning maybe shop was super quiet, where people were mostly ordered things and now maybe there 100 buyer to place orders, then is intense schedule then you & # 39; take intensity afternoon, which was very difficult to maximize sales because there was a marked peak too. So I think eventually it can & # 39; lead to a change in how to maximize the assets of the stores and our inventories. I think there are good opportunities for continued synergy.

There is a store that has already changed his behavior?

-HB: Buenaventura is a good example, is the main store where this onmicanalidad exists. Shop has many physical traffic, is the number one store in the number of & # 39; buyers in & # 39; Cornershop, is the store that most sell in pickup and 30% of sales is omnichannel. Those levels of penetration of online sales are the levels of China. We say that is omni store most channel in Chile

It will repeat at what & # 39; more sales rooms?

-HB This is what led us to move & # 39; & # 39 in the front; this relationship we have with & # 39; Cornershop. We believe that the future not only in stores or on the internet only. He client has different options for missions & # 39; different purchases.

-JPC: In the world there is much consensus, that stores x & # 39; likely to change little, adapt to this new reality because maybe it will not sell the same products, the same schedules and same customers, but will continue to exist, perhaps they will be much more & # 39; experience, to know new products. Finally, one must be prepared for different customers and different uses.

There will be some synergies between and Cornershop?

-HB For now the great synergy is omnichannel, you can & # 39; complements the proposal & # 39; physical stores with pickup, the home service in & # 39; less than 90 minutes. This is a great synergy. Once the transaction is approved, the team & # 39; Juan Pablo is very good at developing technology and maybe we can explore doing things together, but for the moment there are many things in the room level in the way and collected the products, perhaps trying shopper area dedicated to Cornershop, where most of the products in the bag already prepared prior to the pickeo be faster and eventually, why not, it can & # 39; improve promise and goes from 90 minutes to 60 and later to 45, DK in China the Walmart customer promise is shipment in 30 minutes. Obviously mixture is smaller and of collection stores called dark stores, closer to the neural points & # 39; cities. The pattern is different, are ideas that can fly.

-JPC: The mission & # 39; Cornershop is a leading products from your favorite stores as much as & # 39; and everything possible to help, we try to make. The closure of any alternative be silly. And if one day we can collaborate, or Leader or & # 39; other stores we have in the market, we will continue to do so.

-HB: Our goal is to save customers money so they can live better. And a couple customers & # 39; years ago that incorporated the concept of & # 39; time, then make them save money to our customers so they can live better, save time, I believe there is the mother of all synergies.

"Rather than thinking about new markets, we are thinking about consolidation service"

How was the year for Cornershop?

-JPC: Short, very short. It has been a tremendous year. The truth is that we are super young as a company, we have only three years and four months after they intensified each year. Kibna super fast and this year was the best year & # 39; field. We have just launched a new product for all small businesses, so they can find themselves in & # 39; conershop and manage themselves. If you shop or neighborhood store, you & # 39; enter the Cornershop Store and put the name of your store, your logo, your address, upload & # 39; your catalog and start selling. The idea is that you can & # 39; reach out to all small businessmen who want to have service & # 39; Delivery in & # 39; hour and a half or f & # 39; hours venues.


-JPC: We are in white gear, we have 40 of these companies and we are more selective because we are trying everything to work properly. The idea in the future is that stores can go alone.

-HB: We are very excited and facilitate what they have done much to reflect what we do & # 39; SMEs. There SMEs can sell their products from Arica to Punta Arenas thanks to the delivery center of & # 39; Our distribution, which are leveraged with our infrastructure. We have small neighborhood companies have a good super products and can reach Santiago through all & # 39; Cornershop otherwise not come. These are examples to make stuff with our company really very positive. The more companies bring to that market, the more successful the platform.

We look at other markets?

-HB Obviously our decision & # 39; Cornershop was to consolidate in & # 39; two very relevant markets where it is today Chile and Mexico, where we see growth and opportunity is huge. We are very proud that we are investing in & # 39; company & # 39; Chilean entrepreneurs, to eventually use this type & # 39; platform in other markets. Once the transaction is approved there nagħmilna good evaluation, but meanwhile, as has been said Juan Pablo, was short years, but obviously the growth is great.

-JPC: Cornershop As we left we thought that the attention was very important. We started in Chile and Mexico and decided that we will work while in Mexico and in Chile hope to win and that we have very very good service. Still very slow there. Rather than thinking about new markets, yet we are trying to consolidate the service, consolidate product and do it very well. We are super happy with & # 39; what we have achieved but we are still missing a lot of things.

-HB: The day that signed the agreement, we were in & # 39; to the same room, and concern & # 39; "Chaq" (nickname & # 39; Juan Pablo Cuevas) was the spillover brings them news of many orders and could not fulfill his promise. It speaks about the quality of management and the founding & # 39; but also Cornershop & # 39; the emphasis on service so marked, that the first is a service and then growth. I think it is & # 39; praiseworthy, because they are gaining both in & # 39; this moment: excellent service, b & # 39; of & # 39 rates; very good growth.

How is the shopper Cornershop?

-JPC: is totally different. B & # 39; all these technological platforms, super flexible work, in the end you meet all kinds & # 39; people. On the one hand there are the super youth, who are students, who are taking advantage of their weekend or days to m & # 39; have classes or recent graduates. On the other hand, there are all the dads and moms who already have older children who already have more time to want to go back to work. The third group is already seeing a group Cornershop or these platforms as a source of & # 39; work & # 39; first entry or wants jikkomplementah with their work. They are people who work full time or have other jobs and complement. There are also older adults.

-HB: Couple & # 39; seniors have come to bring order to my house. He told me who are retired and had more than 70 years. She knew where there was a supermarket materials and helped with the heavy stuff. "We woke up a little Lucas, make 4 or 5 hours a day and we welcome ourselves like crazy," he told me. It's not a large group, but eventually can & # 39; is an excellent opportunity for those who still feel the energy work. Today we can & # 39; be a small group, but & # 39; great potential for tomorrow.

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