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They already have seven dark stores, one of which is outside of Santiago. Firm noted that the App has had an effect on the penetration of the online channel.
Within the framework of the delivery of results for the third quarter, those who did not manage to get out of the losses, Cencosud – a company linked to Horst Paulmann – provided the first details of the first months of operation of its alliance with the Chilean application Cornershop, which is sealed in mid-August.
The company’s investor relations manager, María Soledad Fernández, indicated that from the point of view of sales and cost savings – since shoppers can pay directly at Cencosud cashiers – the agreement with the startup has been ” very positive”.
He added that, although they have been jointly operating for a month and a half and are not yet disclosing their effects in terms of sales, they have seen an effect on the penetration of supermarkets. Taking into account the Cornershop effect, penetration is close to 10% and without the app it is 8.2%, they explained.
He added that in record time they have managed to implement seven dark stores – six in Santiago and one in the regions – with the support of the alliance, which since its announcement considered a contribution from the Chilean company of US $ 10 million for the supermarket to raise these dedicated points exclusively for online purchases. The objective is not to interfere with the shopping experience of those who attend the physical rooms.
“We are in the phase of including everything that is analytics to the operation of these stores. That is, to have a flow and a logistical and efficient process for the shopper, so that they can enter and exit as quickly as possible”, Fernández said.
Some of the strategic dark store implementation points are: Costanera Center, Alto Las Condes, Portal La Dehesa and Portal La Reina.
Brand reorganization
In the pandemic scenario, Cencosud has outlined several actions in order to reorganize some of its objectives as a company.
Fernández pointed out that they have decided to reconfigure their buying and selling strategy, as well as optimizing the size of the stores and being more dynamic in the irruption of their omnichannel strategy.
Along the same lines, in its rationale, the firm pointed out that on November 2, Cencosud launched the Jumbo Prime program, a membership of $ 25,000 for six months that includes free and unlimited delivery, in online purchases over $ 30,000; personalized offers; exclusive service channel in the internal portal and the double accumulation of Cencosud points.
Meanwhile, when asked about the path taken by its reorganization in Peru -after they announced their departure from the nation where they had 11 stores- the executive said: “We have tents to still sell the merchandise. We are in the process of evolving the stores and negotiations with the owners of those stores. We are progressing as we had planned and we have done well in the sale of inventory (…) We are selling above what we had predicted. “
Regarding another restructuring, in this case that of Johnson in Chile, whose stores will be partially absorbed by Paris, the manager pointed out that there are 13 establishments that are operating today and that “they will become Paris Express.”
The main focus of these stores will be the marketing of the clothing, footwear and sports categories.
Exchange rate and increased competition affected results
As of the third quarter, Cencosud reported losses of $ 7,836 million between July and September, which is compared to the gain of $ 6,962 million it obtained in the same period last year.
Looking at the accumulated result, it can be seen that the company has accumulated losses of $ 142,632. The above contrasts with the $ 139,128 million in profits it achieved in the same period of 2019.
Regarding its revenues, these grew 13% in the third quarter, reaching $ 2,417 million in the period. In his rationale, he explained that this is due to double-digit growth in Chile and Peru, as well as double-digit growth in local currency in Brazil and Argentina and almost double-digit growth in Peru. “However, they are partially offset by the devaluation of the local currency against the Chilean peso in Argentina and Brazil, as well as a more competitive environment in Colombia.”
Regarding its operation in Chile, revenues increased 18.6%, as a result of the Supermarket, Home Improvement and Department Store businesses.
“The performance of the quarter was driven by the sale of the e-commerce channel, which had triple-digit growth. This impact was offset to a lesser extent by the Shopping Centers business, which has been faced with gradual openings by region, and Financial Services, “they added.
At the end of September, the Department Stores business is still affected, as there are 30 stores still closed, which are equivalent to 145,070 square meters. While the supermarket segment grew 20%, the result was offset by the closure of seven stores reflecting the social impact that occurred in October last year, they said, equivalent to 8,332 m2.
Finally, they highlighted the income from own e-commerce at a consolidated level, which increased “significantly, highlighting Department Stores -with a growth of 502% -, followed by Supermarkets -with an increase of 417% – and Home Improvement with an increase of 319% “.
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