Brazilian Retail News

Year 11 - Issue # 405 - So Paulo, September, 19

th
, 2011
Phone: (5511) 3405-6666
BRAZILIAN RETAIL NEWS 1
09/19/2011
Doug McMillon, CEO of Walmart International,
said to analysts it became necessary to turn to the
every day low price business model in Brazil, as
the chain was facing hard times with the former
high-low discount-based model. One year ago,
the company was struggling to be proftable, but
it didnt expect to take so long to implement EDLP.
There are signs the new model is going well, with
a 7% increase in transactions, but the consumer
traffc in the stores dropped about 4%.
Casino increases share in GPA to 46%
French Casino increased its share in Grupo
Po de Acar, Brazils top retailer, to 45.9%, after
Rallye, Casinos controlling company, purchased
3.3 million preferencial shares of GPA last month,
with an option to buy another 4 million in the near
future. Before the US$ 130 million transaction,
Casino owned 43.1% of GPA.
Outback Steakhouse close to selling Brazilian ops
Restaurant chain Outback Steakhouses
Brazilian operations shall be sold to a foreign
group, according to information published by
economy journalist Guilherme Barros. He said in
his blog Peter Rodenbeck, who brought the chain
to Brazil in 1997, has already agreed to the sale
and the process is in the due diligence process.
Today, Outback runs 31 restaurants in Brazil.
Walmart admits troubles in its Brazilian branch
Brazilian retail sales up 7.1%
Figures reported by the ofcial statistics agency
IBGE show in July Brazilian retail sales rose
7.1% over the same period last year, leveraged
by a 21.4% rise in the Furniture and Electronics
segment. The supermarket segment, the most
important in the countrys retailing, once more saw
its sales rise below average, with a 4.5% year-on-
year sales.
Brazilian Retail News
Year 11 - Issue # 405 - So Paulo, September, 19
th
, 2011
Phone: (5511) 3405-6666
BRAZILIAN RETAIL NEWS 2
09/19/2011
The frst global generation
Marcos Gouva de Souza (mgsouza@gsmd.com.br), CEO, GS&MD Gouva de Souza
Momentum
Generation Y is the frst one that can be considered as global, as its attitudes are similar all over the world, as
a consequence of an element of behavioral sameness that come as a consequence of the incorporation of the
Information Technology, computers, laptops, mobile phones, tablets, the Internet and social networks, shaping
behaviors and thoughts.
In several ways, the behavior of the various generations of consumers have always been a reference to segment
and study the evolution of attitudes and behaviors as a result of the moments of several societies and their social,
political and economic factors. Specially, the benchmark used to be the United States, adapting its reality to other
countries and markets.
In time, there were identifed the baby boomers, the ones born in the 50s and 60s, as the generation created
in the post-WWII in the United States; followed by Generation X, born in the 60s and 70s; and, later, by the
Generation X, born in the 80s and 90s and today between 18 and 31 years-old. If the boomers were impacted
in their evolution by the television, the X Gen saw the birth of the internet. The Y Gen consumers are the more
impacted in their behavior by the massive expansion of the access and use of the Web and by the growth of
social networks.
And these are two pivotal factors, the drivers of a universal behavior of consumers worldwide, a process that
didnt occur with the former generations, due to economic, social, political and geographical differences.
The Citizens of the World of the Y Generation are the Neoconsumers, as we were able to identify in the two
editions of a global survey held by GS&MD Gouva de Souza and Ebeltoft Group in 2009 and 2011. And it all
points to the fact that, as time goes by, clearer will be this universal behavior, defned by the evolution of access
and use of the internet and social networks.
The Generation Y accounts for the most part of the estimated 750 million Facebook users, and 50% of them
access this social network at least once a day and have an average of 130 virtual friends, with whom they exchange
information, references and opinions, creating a level of relationship and direct intercommunication unimaginable
in any other moment of history. This, per se, is the pivotal element of the global behavioral alignment, due to the
direct and constant connection of these people.
Different of other generations, this communication is multidirectional. Instead of being recipients of a predominantly
one-way communication coming from the traditional media, this generation, unlike any other before, has the power
of interacting. And it makes all different.
Relevant traces of the behavior of this generation and more and more present in several countries, partly shaped
by the access to broad, general and global information made feasible by technology, are a stronger sense of
independence, as consumers can go, by themselves, deeper in what they want; and a critical spirit driven by the
opportunity of free-speaking brought in by the multichannel digital communication tools.
The same way and for the very same reasons, this generation is more multitasking. On the other hand, however,
they become more superfcial and instant in their behavior, what refects in their shopping and spending attitudes
and habits, and also in their preferences by brands, stores and sales and relationship channels.
Thus, more and more the solutions created by brands, retailers and service providers worldwide will be more
lookalike, as the demands will tend to be more aligned. On the other hand, some of the more present characteristics
point exactly to more customized and specifc propositions.
In the store environment, more specifcally, the Generation Y consumers have a consumer behavior that brings
all this information acquired, shared, criticized and referenced by the internet and social media, leading to new
and more creative solutions for the stores, that have been converting, more and more, in points of relationship,
convenience, learning, information, services and experience.
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