Read the most important news on the Brazilian retailing:
* Zara Brazilian supplier accused of slave labour
* Online retail sales rise 24% in H1
* Carrefour CEO says Brazil unit not for sale
* Umbria speeds up expansion of Domino’s Pizza in Brazil
Read the most important news on the Brazilian retailing:
* Zara Brazilian supplier accused of slave labour
* Online retail sales rise 24% in H1
* Carrefour CEO says Brazil unit not for sale
* Umbria speeds up expansion of Domino’s Pizza in Brazil
Read the most important news on the Brazilian retailing:
* Zara Brazilian supplier accused of slave labour
* Online retail sales rise 24% in H1
* Carrefour CEO says Brazil unit not for sale
* Umbria speeds up expansion of Domino’s Pizza in Brazil
nd , 2011 Phone: (5511) 3405-6666 BRAZILIAN RETAIL NEWS 1 22/08/2011 Inditex-owned fast fashion chain Zara is currently under investigation by Brazils Ministry of Labour after one of its suppliers was accused of slave labour. Four So Paulo sweatshops were raided in late June, with all garments discovered in the investigation labelled with the Zara brand. The workers in the shops were from Bolivia and Peru. Inditex said in a statement sent that the case involved unauthorised outsourcing by a Brazilian supplier for the company. Inditex did not provide the name of the supplier. The supplier was entirely responsible for the fnancial compensation of the workers, as established in Brazilian law and Inditexs code of conduct, the company statement said. US Costco prepares to open stores in Brazil US warehouse club chain Costco is in talks with one of the main supermarket chains in the Southern region of Brazil to form a JV to run its stores in the country, according to Relatrio Reservado report. Online retail sales rise 24% in H1 Brazilian online retail sales continue growing far above overall retail. According to e-bit consulting, sales rose 24% in the frst half of the year over the same period in 2010, to R$ 8.4 billion (US$ 5.25 billion), driven by the entry of lower-income people in the online world. E-bit forecasts online retail sales will end the year in the R$ 18.7 billion (US$ 11.68 billion) range, 26% more than in 2010. Zara Brazilian supplier accused of slave labour Carrefour CEO says Brazil unit not for sale Carrefour is not looking to sell its Brazil unit, Chief Executive Lars Olofsson told last week during a visit to the country, adding that he remains open to possible partnerships in Latin Americas largest economy. Wal-Mart has hired UBS as an adviser as it weighs a potential purchase of Carrefours Brazil assets, a source familiar with the situation told Reuters, but Oloffson said he was not negotiating with Wal-Mart and not selling the Brazil unit. Still, Olofsson said he remained opened to possible partnerships in the Brazilian market, which has become key for profts as growth stagnates in the supermarkets traditional markets such as France and Spain. Brazilian Retail News Year 11 - Issue # 401 - So Paulo, August, 22 nd , 2011 Phone: (5511) 3405-6666 BRAZILIAN RETAIL NEWS 2 22/08/2011 Umbria speeds up expansion of Dominos Pizza in Brazil Six years after assuming the management of Dominos pizza chain in Brazil, Umbria group says it is time to expand the restaurant chain. Still concentrated in Rio de Janeiro, Dominos runs 35 stores and plans to open ten more until December, increasing the store count by 50% this year. The goal is to build a 100 store chain by 2014, all over the country. Sam Zell mulls purchase of top online retailer US investor Sam Zell, well known in Brazil for his real estate ventures, plans to diversify his businesses in the country. Relatrio reservado report says that, aiming to take advantage of the increasing spending of the local population, Zell plans to purchase stocks of online retailers. The main acquisition target would be Submarino. com.br, part of B2W, the countrys top online player. Northeast to drive c-store market sales Northeast and Midwest are the two Brazilian regions with stronger potential to the expansion of convenience stores in the country, according to trade group Sindicom, who expects this market to rise by 15% per year in the next two years, above overall retail sales. Today, there are 6,153 c-stores in gas stations in Brazil, or 16% of the Market, a much smaller share than in the US (89%) or even Latin American countries, as Argentina (49%), Venezuela (38%) and Chile (34%). Brazilian Retail News Year 11 - Issue # 401 - So Paulo, August, 22 nd , 2011 Phone: (5511) 3405-6666 BRAZILIAN RETAIL NEWS 3 22/08/2011 The Neoconsumer shows up Marcos Gouva de Souza (mgsouza@gsmd.com.br), CEO, GS&MD Gouva de Souza Momentum Neoconsumer, the multichannel, digital and global consumer, has seen his relevance grows in all retail segments and formats, not only in the online world, but, mainly, due to the changes imposed to other distribution channels. The new behavior learned and incorporated from his experiences in the digital world (internet and mobile) defines new expectations and atitudes that are translated into more and better Information on products and brands; in the more critical comparison on whats offered; and in a significant increase in the importance of referrals from other consumers about their own experiences with products, brands, websites and stores. These elements help reshaping retail in almost all product categories, worldwide and specially in Brazil. The new edition of the global survey on the Neoconsumer, that interviewed 10,500 people in 15 countries, done by GS&MD Gouva de Souza with support of Ebeltoft Group and to be presented this week in DIGITAILING the International Digital Retailing Forum, shows the changes in consumer behavior made possible by the use of internet to search for products and compare prices. In 2009, 49% of the interviewed people in Brazil said they used to shop online and purchase in the brick-and-mortar store, a figure that jumped to 84% this year, pointing to a new Neoconsumer shopping behavior. It is important to remind there are in Brazil 72 million internet users and that the e-bits Web Shoppers survey, released last week, the use of the web to shop goods and compare prices is the second largest use of the internet, with 81% of mentions, after accessing emails (95%). The same Web Shoppers survey say e-commerce sales rose 24% in the first half of the year if compared to the same period in 2010. FY forecast is for a 29% growth, to R$ 18.7 billion (US$ 11.69 billion). Considering overall retail sales are expected to grow by 7% this year, in the country the expressive growth of the share of digital sales over total retail sales, a worldwide move, has been also happening. As important, or even more, than the growth of online retail sales are the consumer behavior changes and the impact on new demands. In the Neoconsumer study, another relevant aspect was the evolution of the share of people declaring they used price comparison sites in Brazil; from 73% to 81% in the last two years. The global macroeconomic effect of this price comparison attitude presents a growing and irreversible pressure on retail profitability, also leading to pressure on suppliers, as consumers, more informed and critical, will tend to purchase where prices are lower, impacting margins. Brazilian Retail News (BRN) is a weekly newsletter published by GS&MD - Gouva de Souza with the most important news on the Brazilian retailing. The content can be freely used, once the source is quoted. If you want any information on BRN or our services, please send an email to publicacoes@gsmd.com.br or access GS&MD - Gouva de Souza at www.gsmd.com.br. Gouva de Souza & MD Desenvolvimento Empresarial Ltda. Av. Paulista, 171 - 10 foor Paraso So Paulo Brazil Zip Code: 01311-904 Phone: (5511) 3405-6666 Fax: (5511) 3263-0066