- Local TOP brand in the Supermarket sector. In direct competition with Walmart, but with sales that were barely 30% of those of the Bentonville complany. Management and profitability problems. 4% EBITDA. Progressive loss of market share. Old and obsolete business image. Presence only in the country’s capital
- The business is bought by a group of business men, owners of 2 companies, leaders in their respective sectors, but with no previous experience in the supermarket business. New owners hire Erea to help with the turnaround. Erea participates from the initial acquisition process, until turnaround is accomplished
- Changing the company’s image
- Improve the company’s profitability so that it can pay off corporate debt, distribute dividends, and invest in strong growth.
- Gain market share and become the country’s leading supermarket
- EREA took control of the Supermarket with a mixed team made up of trusted men from the business group and Erea consultants. A 5-year strategic plan was drawn up (change of image, internal restructuring, creation of new departments, improvement of the management and variable remuneration model, shop remodeling, logistics centralization, modernization of systems, customer service culture, and aggressive new store’s opening plan). After 3 years of EREA Co-administration, the areas were gradually handed over to Client’s executives
- Revenue grew by 82% over the 5 year period of the project
- EBITDA grew by 285% over the 5 year period of the project