Strategic Trends in Global Retailing What it means for Latin America s retailers

Transcription

1 Strategic Trends in Global Retailing What it means for Latin America s retailers ALAS 2003 Acapulco, Nov 2003 Ira Kalish Global Director

2 What about the business environment? Expect slow growth in developed countries

3 What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries

4 What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics

5 What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics Embrace demographics

6 What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics Embrace demographics Deflation

7 What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics Embrace demographics Deflation Keep an eye on asset markets

8 What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics Embrace demographics Deflation Keep an eye on asset markets Keep an eye on Wal-Mart

9 What about the food retail environment? Excess capacity

10 What about the food retail environment? Excess capacity Consolidation

11 What about the food retail environment? Excess capacity Consolidation Globalization

12 What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding

13 What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues

14 What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues Focus on cost cutting

15 What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues Focus on cost cutting Focus on new customers

16 What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues Focus on cost cutting Focus on new customers Focus on share of wallet

17 What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues Focus on cost cutting Focus on new customers Focus on share of wallet Focus on filling in the gaps

18 What about the global consumer?

19 What about the global consumer? Time conscious

20 What about the global consumer? Time conscious Price conscious

21 What about the global consumer? Time conscious Price conscious Quality conscious

22 What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic

23 What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic Bored and lonely

24 What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic Bored and lonely Easily jaded

25 What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic Bored and lonely Easily jaded Fragmented shopping experience

26 How to respond? Offer value

27 How to respond? Offer value Offer quality

28 How to respond? Offer value Offer quality Offer differentiated selection

29 How to respond? Offer value Offer quality Offer differentiated selection Offer an experience

30 How to respond? Offer value Offer quality Offer differentiated selection Offer an experience Offer speed and convenience

31 What about Wal-Mart? Food Foreign Fashion Format

32 Wal-Mart s Global Push Wal-Mart International Store Count As of January 2003 Super Discount Supercenter Sam s Club Market Total Argentina Brazil Canada China Germany Japan (Seiyu)* South Korea Mexico Puerto Rico UK International total ,688 Total including US2,262 1, ,088 * NOTE: Owns a 34% stake in Seiyu as of March 2003.

33 Fashion: the Search for Margins Strong with Kids

34 Fashion: the Search for Margins Strong with Kids Greater Share of Wallet

35 Fashion: the Search for Margins Strong with Kids Greater Share of Wallet New Customers

36 Fashion: the Search for Margins Strong with Kids Greater Share of Wallet New Customers George Who?

37 Fashion: the Search for Margins Strong with Kids Greater Share of Wallet New Customers George Who? Taking on Target

38 Wal-Mart in Britain Conversion to Supercenter Implementation of Efficiencies Leveraging George

39 Wal-Mart in Europe? France and Beyond Goal: pan-european Leadership

40 Carrefour Cost reduction focus

41 Carrefour Cost reduction focus Apparel and other goods

42 Carrefour Cost reduction focus Apparel and other goods Multiple formats (Dia and Champion)

43 Carrefour Cost reduction focus Apparel and other goods Multiple formats (Dia and Champion) Secondary cities in emerging markets

44 Carrefour Cost reduction focus Apparel and other goods Multiple formats (Dia and Champion) Secondary cities in emerging markets New markets (Russia, India, USA?)

45 The Future of Hypermarkets Few new stores in home markets

46 The Future of Hypermarkets Few new stores in home markets More from existing customers

47 The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers

48 The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers More margin

49 The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers More margin New markets

50 The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers More margin New markets Multiple formats

51 The Future of Others Leverage closeness to consumer

52 The Future of Others Leverage closeness to consumer Focus on price

53 The Future of Others Leverage closeness to consumer Focus on price Focus on quality

54 The Future of Others Leverage closeness to consumer Focus on price Focus on quality Focus on convenience

55 The Latin American business environment Economic recovery accelerates

56 The Latin American business environment Economic recovery accelerates Low inflation breeds retail modernization

57 The Latin American business environment Economic recovery accelerates Low inflation breeds retail modernization Argentina: rapid recovery, remaining risks

58 The Latin American business environment Economic recovery accelerates Low inflation breeds retail modernization Argentina: rapid recovery, remaining risks Brazil: fiscal conservatism, emphasis on the poor

59 The Latin American business environment Economic recovery accelerates Low inflation breeds retail modernization Argentina: rapid recovery, remaining risks Brazil: fiscal conservatism, emphasis on the poor Mexico: slow reforms, impact of US, compensated by macroeconomic stability

60 Latin American Retail Food retailers operate multiple formats

61 Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet

62 Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet Poor consumers become a target

63 Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet Poor consumers become a target Non-food modernization accelerates

64 Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet Poor consumers become a target Non-food modernization accelerates Shift from financial management to merchandising

65 Key Retailers in Latin America Wal-Mart

66 Key Retailers in Latin America Wal-Mart Carrefour

67 Key Retailers in Latin America Wal-Mart Carrefour Ahold

68 Key Retailers in Latin America Wal-Mart Carrefour Ahold Local hypermarkets

69 Key Retailers in Latin America Wal-Mart Carrefour Ahold Local hypermarkets Local supermarkets

70 Key Retailers in Latin America Wal-Mart Carrefour Ahold Local hypermarkets Local supermarkets New foreign investors

71 Success Criteria for 21st Century Retailers Customer Focus

72 Success Criteria for 21st Century Retailers Customer Focus Differentiation

73 Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management

74 Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management Innovation

75 Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management Innovation Supply chain efficiency

76 Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management Innovation Supply chain efficiency Flexibility