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Cencosud defines a plan to boost the department store business




That physical stores no longer sell as before is a common diagnostic in the retail industry. The decrease in the visit of Argentine tourists, disruption of e-commerce, and the lower average vote are some of the elements that have a real head to the sector, which seeks to replenish and monetize sales of its rooms.

This puzzle solution is one of the tasks facing the general manager of the stores by the department of Cencosud, Ricardo Bennett, who, having participated in technological recycling activities with his partner Degraf, PULSO explained part of its strategy, which is the premise is to create an "unforgettable experience in the sales room "He said.

In Chile, Cencosud has 81 stores in this business sector, whose weight is 23.5% of domestic business in terms of sales (see Infographics). The Paris and Johnson brands operate in this segment. Bennett's work is located on several fronts. One of them should do directly with square meters, which in his opinion "are a bit exaggerated" and the future should tend to the downside, he explained. While not only will reduce space: "There are many (square meters) that are going to reuse and need to change the new services, to give much emerging trade opportunities," he said. It is not only to support small and medium-sized companies, but also to offer another product.

"Before you went and saw the same products for a long time, it is now being dynamically renewed and provides opportunities for small and medium-sized companies," he added.

Ecommerce, far from being like competition, plays the role of a physical store tool, Bennett said. "What happened in the big business is that they leave the sales room aside and focus on e-commerce and that makes the sale and experience in the room a lot, so we are very focused on developing new capabilities," he said.

One of these experiences is fast delivery within that day, in addition to capabilities related to time windows, the manager explained. In this segment, they work with the last four mile companies. "We are testing on the radio that these companies are working on how to operate and use those capabilities that have been developed and can be integrated," he said. And it is not only in front of the delivery service, but also in other initiatives, such as the technological recycling they offer when purchasing a product of the same category and where in March they have been recycled 4,000 units under this method.

Although most of the changes will apply to Paris, Johnson Stores will also be re-targeting, leaving non-disguised areas while maintaining telephony products. This will involve the development of smaller stores, on the order of 2,000 m2 and these 4,000 m2 of positions that are compatible with Mega Johnson will also be reduced, although "there is also the possibility of reusing them with some other formats or those stores, Where Paris can take a role and where we value the idea of ​​a new business idea that can come out, "he said.


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