Monday, June 27, 2016

While boutiques grow, traditional meat retail skate in crisis

São Paulo-although work on the same thread, retail meats, traditional butchers and meat stores go through completely different moments. While the first feels the difficulty of the moment, the second does not stop growing.
Consultation by the DCI, economists and businessmen who work in the industry agree that there is no competition between the two niches. If the gourmet butchers serve a slice of the richest population, the popular deal directly with those who have suffered with high inflation and the economic crisis: the classes C and d.
The disparity, according to the Economic Advisor to the Federation of trade in goods, services and tourism of the State of São Paulo (FecomercioSP), Victor, France happens precisely because meat stores are given a public before orphan care and who had no custom access to more sophisticated pieces of meat.
"The entry of players in this niche did create a new market: the gourmet butchers. He meets a portion of public who no longer bought in the shop. Therefore, there is no competition between them, "he says.
In the opinion of the assessor, the real competition from popular butchers are in supermarkets, which in recent years have sought to improve this type of service in their sales points.
The disparity
One of the most traditional butchers paulistanos, to Tennessee, with 34 stores throughout the greater São Paulo, presented sales downturn at about 13% in the first six months of this year, compared with the same period last year. The average ticket also retreated. A year ago, customers of the shop desembolsavam 10% more on every purchase.
To reverse the bad results, the network made an effort to cut fixed costs. Between water and electricity employees, reducing the expenses made was 7%. In addition, it was necessary to reduce the profit margin.
"The crisis is responsible for transforming the eating habits of Brazilians. Today, cheaper meats, such as chicken and pork derivatives, for example, are the sales champions. Cuts like Tenderloin and loin, which cost about $ 30 a pound, are leaving for celebrations, "says the General Manager of Tennessee, Ariovaldo Viotto.
Even with the difficulties, the company has sought to open new stores to increase their market presence. Example, at the beginning of the week, the network opened a new store in the southern area of São Paulo. "As we had to reduce the margin, we need to increase the volume of sales. The new store will help us, "he explains.
Franchise
Away from this reality, the Parana State Farm butcher shop Gourmet franchise saw its sales climb 85 percent during the first quarter of this year, compared with the same period of the previous year. Sales advanced at the same rate, with a high of 69% on the same basis of comparison.
"We serve a new audience, which is mostly made up of people of high class and who don''t feel so much the crisis", celebrates the Farm Director, Lucas Ribas.
With only one shop in Ponta Grossa (PR), the network provides reach to other cities in the South such as Curitiba, Londrina and Florianópolis soon through franchising.
DCI News Item translated automatically
Click HERE to see original
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