Strategic Trends in Global Retailing What it means for Latin America s retailers ALAS 2003 Acapulco, Nov 2003 Ira Kalish Global Director
What about the business environment? Expect slow growth in developed countries
What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries
What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics
What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics Embrace demographics
What about the business environment? Expect slow growth in developed countries Expect volatility in emerging countries Bemoan demographics Embrace demographics Deflation
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
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
What about the food retail environment? Excess capacity
What about the food retail environment? Excess capacity Consolidation
What about the food retail environment? Excess capacity Consolidation Globalization
What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding
What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues
What about the food retail environment? Excess capacity Consolidation Globalization Focus on branding Focus on supplier issues Focus on cost cutting
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
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
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
What about the global consumer?
What about the global consumer? Time conscious
What about the global consumer? Time conscious Price conscious
What about the global consumer? Time conscious Price conscious Quality conscious
What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic
What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic Bored and lonely
What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic Bored and lonely Easily jaded
What about the global consumer? Time conscious Price conscious Quality conscious Schizophrenic Bored and lonely Easily jaded Fragmented shopping experience
How to respond? Offer value
How to respond? Offer value Offer quality
How to respond? Offer value Offer quality Offer differentiated selection
How to respond? Offer value Offer quality Offer differentiated selection Offer an experience
How to respond? Offer value Offer quality Offer differentiated selection Offer an experience Offer speed and convenience
What about Wal-Mart? Food Foreign Fashion Format
Wal-Mart s Global Push Wal-Mart International Store Count As of January 2003 Super Discount Supercenter Sam s Club Market Total Argentina - 11 - - 11 Brazil - 12 8 2 22 Canada 213 - - - 213 China - 20 4 2 26 Germany - 94 - - 94 Japan (Seiyu)* - - - 400 400 South Korea - 15 - - 15 Mexico 472 75 50-597 Puerto Rico 9 2 9 32 52 UK - 258 - - 258 International total 694 487 71 436 1,688 Total including US2,262 1,745 596 485 5,088 * NOTE: Owns a 34% stake in Seiyu as of March 2003.
Fashion: the Search for Margins Strong with Kids
Fashion: the Search for Margins Strong with Kids Greater Share of Wallet
Fashion: the Search for Margins Strong with Kids Greater Share of Wallet New Customers
Fashion: the Search for Margins Strong with Kids Greater Share of Wallet New Customers George Who?
Fashion: the Search for Margins Strong with Kids Greater Share of Wallet New Customers George Who? Taking on Target
Wal-Mart in Britain Conversion to Supercenter Implementation of Efficiencies Leveraging George
Wal-Mart in Europe? France and Beyond Goal: pan-european Leadership
Carrefour Cost reduction focus
Carrefour Cost reduction focus Apparel and other goods
Carrefour Cost reduction focus Apparel and other goods Multiple formats (Dia and Champion)
Carrefour Cost reduction focus Apparel and other goods Multiple formats (Dia and Champion) Secondary cities in emerging markets
Carrefour Cost reduction focus Apparel and other goods Multiple formats (Dia and Champion) Secondary cities in emerging markets New markets (Russia, India, USA?)
The Future of Hypermarkets Few new stores in home markets
The Future of Hypermarkets Few new stores in home markets More from existing customers
The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers
The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers More margin
The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers More margin New markets
The Future of Hypermarkets Few new stores in home markets More from existing customers Go after new customers More margin New markets Multiple formats
The Future of Others Leverage closeness to consumer
The Future of Others Leverage closeness to consumer Focus on price
The Future of Others Leverage closeness to consumer Focus on price Focus on quality
The Future of Others Leverage closeness to consumer Focus on price Focus on quality Focus on convenience
The Latin American business environment Economic recovery accelerates
The Latin American business environment Economic recovery accelerates Low inflation breeds retail modernization
The Latin American business environment Economic recovery accelerates Low inflation breeds retail modernization Argentina: rapid recovery, remaining risks
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
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
Latin American Retail Food retailers operate multiple formats
Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet
Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet Poor consumers become a target
Latin American Retail Food retailers operate multiple formats Food retailers seek greater share of wallet Poor consumers become a target Non-food modernization accelerates
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
Key Retailers in Latin America Wal-Mart
Key Retailers in Latin America Wal-Mart Carrefour
Key Retailers in Latin America Wal-Mart Carrefour Ahold
Key Retailers in Latin America Wal-Mart Carrefour Ahold Local hypermarkets
Key Retailers in Latin America Wal-Mart Carrefour Ahold Local hypermarkets Local supermarkets
Key Retailers in Latin America Wal-Mart Carrefour Ahold Local hypermarkets Local supermarkets New foreign investors
Success Criteria for 21st Century Retailers Customer Focus
Success Criteria for 21st Century Retailers Customer Focus Differentiation
Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management
Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management Innovation
Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management Innovation Supply chain efficiency
Success Criteria for 21st Century Retailers Customer Focus Differentiation Brand management Innovation Supply chain efficiency Flexibility