New President of Walmart Brazil wants to put leading retailer

About to finish tidying the House, with the closure of 25 stores in the country until the end of next week, the new President of Walmart Brazil, Guilherme Loureiro, told the ' State ' that the world's largest retailer's plans for the Brazilian market are ambitious. "We want to grow and make the operation leader in Brazil." He commanded a sustainability event yesterday attended by 18 network suppliers.
A little more than two months ahead of the company in the country, Loureiro said the world direction Walmart gave a period of 100 days to chart plans for the Brazilian subsidiary. "I am formulating my vision of business and where we want to get the Walmart Brazil."
But before submitting the plan to the world, the Executive Director was tasked with a thankless mission: close 25 stores that involve cutting about 1.5 thousand jobs, as reported by the middle of last month, when it was announced the paring down.
Loureiro said most of the points of sale has been terminated "without great inconvenience". This means, according to him, who sought to take advantage of the workers within the company itself. Anyway, he believes this indentation is necessary so that the network can grow more quickly. "I need to be efficient, have a positive response of my consumers to give a positive response to my shareholders to continue growing. And these stores were cluttering up. "
Since he arrived in the country in 1995, the Brazilian operation of Walmart failed to achieve the leadership. At the premiere, bought a fight of great proportions with industry for selling products below cost. In addition, had inappropriate items on their shelves to the local market, such as golf clubs, for example. After these episodes, went on to insist that would grow just opening stores and never by acquisitions of local networks.
This strategy, however, proved disastrous. Over the years the network if abrasileirou: bought local competitors from North to South of the country, went on to sell "bolo de rolo", typical sweet of the Northeast, and was its President between recruit industry executives, something unthinkable 20 years ago. Loureiro, for example, came from the other side of the counter. For 24 years he worked at Unilever, the global giant food industry, hygiene and cleaning products.
Results. Despite having changed his strategy, the Brazilian operation still is viewed critically by the direction of Walmart world. During the presentation held last month at the company's headquarters in Bentonville (USA), the world direction pointed out that Brazil is having return on investments that is smaller than the average of the company's international operations, but pondered that are great opportunities for improvement in the country.
In the first and second quarter, Walmart lost force in Brazil in relation to competitors. Between January and March, the company's gross sales grew 5.5 percent in the country as compared to the same period in 2012. In the second quarter, total sales increased 2.8% compared to the previous year. Meanwhile, Grupo Pão de Açúcar, expanded in 10.6% gross revenues with food in the first quarter of this year as compared to the same period in 2012 and registered an increase of 8.8% in the second quarter, on the same basis of comparison. At Carrefour, the increase in gross revenue in the first quarter had been of 13.3% in comparison with the same period in 2012.
Although excited with the goal of bringing the Brazilian subsidiary to leadership, Loureiro is aware of the great challenge that lies ahead. Last year, the network made in Country R $ 25.9 billion and occupied the third position in the ranking of the Brazilian Association of Supermarkets (Open), behind the Pão de Açúcar group, leader in sales with $ 57.2 billion, followed by Carrefour, which grossed $ 31.4 billion. He said he has not been set on how long this goal should be achieved. "We are the third largest retailer of Brazil. We have a long way to become a leader. "
While draws up long-term plans, the Executive cannot leave the ball. He told that his focus today is to leave the azeitadas shops for sale, the best time for retail. "This is the time not to cause the least disruption in the operation."