- Second player in the Supermarket sector, with a 20% market share in 2020. Walmart is the leader with over 50% market share
- Until 2013, the chain registered strong growth due mainly to mistakes made by the competition. The competition was going through a transition phase with the purchase of CARHCO by Wal-Mart.
- However, from 2013 onwards, the EDLP strategy and the aggressive opening of stores will drive strong growth for Wal-Mex in Central America. Our Client’s growth started to slow down, EBITDA was stagnating, and the CEO sees the beginning of a much more difficult phase, so he hires the services of EREA
- Reformulate the company’s strategy to adapt it to changes in the market. Implement a plan that will enable the company to maintain and exceed the sales growth levels of previous years (C.A.G.R. around 15%). Progressively improve EBITDA to double-digit levels by 2020
The project began with a renegotiation of Trade Term with CPG suppliers, and the development of the 2014/2020 strategic plan that included different projects for the coming years (plans to improve organic growth, expansion plans and development of new formats, organizational restructuring, supply chain, etc.). The organizational structure was worked on and new departments were created. The marketing message and strategic positioning were changed. The entire marketing mix was improved and in-store merchandising was enhanced. Detailed budgets were drawn up and matched with a set of objectives with variable remuneration for first and second line executives. The main processes were re-engineered, and strong effort was put on the change management process
- Revenue grows 177% in a 6 year period
- Margin improved 2.72 percentage points after first negotiations with CPG suppliers
- B2B Platform to monetize data with CPG suppliers was introduced, generating more than 2 million dollars per year, 4times the initial amount received from CPG suppliers from data sharing fees to that point.
- EBITDA grows from 6% to above 10% in a 5 year period