Via Retail shops opening dry starts, keeping an eye on more sales return

SAO PAULO-the network of furniture and appliances Via Retail starts this Thursday the operation of a physical store format that occupies less area, but that can bring the most profitable company in the form of cost savings and more sales, claimed company executives controlled by GPA.
The company will start by Canoes (RS) the opening of shops "smart" format that occupies an area of approximately 30% less compared to the current average of 900 to 1,100 square meters of a traditional store Via retail, said the Executive Director of physical stores Paul Naliato. Reducing the size of the store is permitted by the smaller physical product showcase, which will be partly displayed through terminals connected to the Internet.
The intention of Via retail is opening 10 new stores this year in the smart concept and convert 250 of about 1,000 stores to this format too, until the end of 2017. The plan is to bring the format to all the shops of Via Retail in the country in the coming months, which should receive the necessary infrastructure for that by the end of 2018, said the Executive.
"With this concept, we can go into markets where we are not present so far," said Naliato. The Director of sales Via Retail model, Marcelo Nogueira, cited the example of Porto Feliz (São Paulo), smart store opening in December. In addition to new regions, the format allows the network thickens where is already present, Naliato said, citing as an example the District of Itaquera, in the East zone of São Paulo.
Executives prevented need numbers, but said that the new format should not generate relevant impact of cannibalization of existing stores. "Some level of cannibalization can exist. But let's take market share from competitors, the market might not even grow, but with this strategy we can move forward on participation of competitors, "said Nogueira.
The competitor Magazine Luiza, often cited as a reference in electronic commerce in Brazil, launched in 1992 1 store format without physical exhibition of products such as televisions and refrigerators, but Via Retail executives contend that it is not a question of adopting the model of rival.
"It's different, we have the physical exposure of products and a supply of technologies to make the sale more efficient ... We want the store to be dynamic, you update your display of products more rapidly to attract the interest of the customers, "said Nogueira.
According to him, the technology employed in stores, which will use to drive heat maps of customers in stores, will enable downsizing to an average of 14, compared to 20 in a traditional store. In addition, the company hopes to conclude with the new shops selling products abandoned by customers in electronic commerce stands Via retail.
This is because the company used by the client application to start a purchase by mobile phone, for example, will connect with the smart shop system. "We're going to have to invest much less time with the client to find out what he's interested. The dialogue between seller and customer will not start from scratch, "said Naliato.
Asked about the fate that will Retail for space Via released in stores on the adoption of the smart model, Naliato stated that the company may choose at some stores to reduce the physical space of the point of sale and other may include new product categories s.
The plan for the new store format happens amid the efforts to promote the Retail Route purchase mode in which the client buys the product through the Internet, but chooses to remove it in the physical store that is closer, something that can produce a reduction in the cost of logistics 20% order.
According to Naliato, Via Retail plans to open 70 stores in Brazil in 2018, all smart format. "We see major opportunities in the State of São Paulo, in the Northeast and in the South of the country," said the Executive.
The early opening of shops in the new format happens the week of Black Friday, an event that takes place on Friday and that has national physical and electronic retail promising discounts on products and services. Naliato stated that the Retail has a positive expectation Route for Black Friday this year, in the face of signs that sales will be within the expected by the company.
"There are macroeconomic signals better this year. May be small in terms of employment, but show appetite to purchase better consumers than last year, "Naliato said, without giving details.
According to one of the creators of the event in Brazil, the portal Search Discounts, in 2017 Black Friday should move about of 2.2 billion reais, 19% growth over same period in 2016, when he had 17% expansion.