Via Retail should intensify regionalized performance to win market

After obtaining R $49 million loss in the first quarter of 2019, the retailer Via Retail – SP marks Casas Bahia and Ponto Frio-bet big on regional pricing and on completion by the end of June total integration between the sales channels online and physical. "Should leverage regionalized positioning and promote greater competitiveness, especially in segments of items such as furniture and small appliances, which also assists in the growth of the flow of customers in our stores," explained in Conference call to the market Via retail, CEO Peter Esterman, noting that the participation of such categories in the gross sales has increased – reaching levels checked on 2017.Na evaluation of Active investment analyst Ilan Arbetman, the adoption of this more regionalised positioning Via Retail can be regarded as an attempt to gain market share, once foreign giant Amazon stepped on Brazilian soil recently. "Last year for that we didn't have big changes in seasonal terms. What can we conclude from this movement [Via retail] is that there is greater competition within the industry, especially with the opening of the second Amazon distribution center in Brazil, "says the analyst, noting that the projections of the market drew prejudice between $5 million and $10 million R R in the company in the first quarter. Beyond regionalization, Estermann stated that the company has other foundations of growth for the short term. "In the next 90 days, we will continue intensively on three strategic pillars for the company's growth: improving our commercial proposal-based pipeline and categories more efficient, operational efficiency, and ultimately cost adjustment", added Estermann on teleconference. In this way, the Executive mentions the need to adjust the level of efficiency and of integration between online and offline sales channels by the end of the first half of 2019. "By the end of June we should complete the full integration between offline and online operations of the company. This should promote greater efficiency in the management of our stocks and also predictability, "added he. According to Estermann, in relation to the cost-cutting plan, there is an attempt to ensure that such measures do not affect consumer shopping experience. "All initiatives in this direction have already been taken and from now on we began to reap the results of that." About the strategies adopted, the Active consultant, Ilan Arbetman, believes that one factor that may have "jumbled" the company's performance in the last two years has been the lack of understanding within the Board of Directors. The GPA Group intends to complete the sale of the parent company until the end of 2019, preferably to some international player. Balance sheet released yesterday (24), the company's quarterly statement shows a fall of 18.2% in Ebitda (earnings before interest, taxes, depreciation and amortization) in the 2019 first-quarter compared to the same period in the previous year – reaching R $521 million. With regard to the company's planned Capex for 2019, there is no contribution between R and R $550 million $600 million. However, such an amount of capital must still pass through the seal of the Board of the company. In addition, the billing online platforms amounted to R $1.7 billion on the same basis of comparison. Finally, the gross revenue of the physical stores in the period analyzed in the balance sheet R $5.9 high of 0.3% billion – about a year.