Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
Company Presentation
1
Company Presentation
3 flags
285 stores 28 Jumbo 77 Disco 180 Vea
3 formats
Hypermarkets More than 3.600 m2 Supermarkets between 351 and 3600 m2 Convenience stores Up to 350 m2
Present in 18 provinces Total headcount 18,000 employees
Company Presentation
Buenos Aires’ Logistics
INFLUENCE ZONE
Buenos Aires 3 distribution centers
139 supplied stores 614 employees
Surface 78.500 m² 158.800 daily packages
1.380 Km maximum distance travelled
Company Presentation
Cuyo’s and Noa’s Logistics
INFLUENCE ZONE
CD Mendoza - CUYO
CD Tucumán - NOA
NOA 1 distribution center
39 supplied stores 77 employees
Surface 11.000 m² 25.000 daily packages
501 Km maximum distance travelled
Cuyo 1 distribution center
59 supplied stores 320 employees
Surface 42.100 m² 115.000 daily packages
1.540 Km maximum distance travelled
Strategy 2017
2
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
High quality of perishable foods Competitive Advantages
•Homogenous product
•Quality control of raw materials
•Longer shelf life
• Deboning and packaging in our Ezeiza model plant
• Direct purchase of cattle from producers
• To ensure the tracking and quality of our products
• To improve purchasing conditions
• For greater control process
•We buy every day fresh sea food in Mar del Plata city.
•We receive Monday through Friday of the night and early morning is distributed to the stores
•We ensure to sell daily fresh sea food and we make last call sales.
Competitive Advantages Sea Food Commercial Area
High quality of perishable foods
STRATEGY:
To preserve our customers by offering them a unique purchasing experience of fresh products.
To develop a new product line: JUMBO FRESH.
To offer a wide selection of fresh and daily products.
High quality of perishable foods Jumbo Fresh’s Positioning
High quality of perishable foods Jumbo Fresh’s Proposal
“An offer of daily elaborated healthy and delicious foods.”
Jumbo Palermo Plant
Delivery points: 60 stores
Turnover: $ 7.500.000
Users: 17 People
Assortment: 45 products
High quality of perishable foods Jumbo Fresh’s assortment
Sushi
9 selections
Sushi x 10
9 selections
Wraps 3 selections
4 selections Quiches and tarts
Salads
Sandwiches & bagels
High quality of perishable foods Jumbo Fresh’s assortment
Wok
Hot Meals
Lemonades
Veggie burger
Desserts
3 selections
5 selections
3 selections
7 selections
High quality of perishable foods Jumbo Fresh’s displays
Platos Postres y
Limonadas Sándwich Wraps Ensaladas Sushi
172 Employees
It supplies 139 stores
1.000 Tons/month
4.800 Sq mts
Production Plant
High quality of perishable foods
Ituzaingo Plant
Production Plant
High quality of perishable foods
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
• Currently, there are forty imported private-label products being registered. These include commodities and products developed by our affilialiated companies in other countries.
Assortment differentiation
Private Label
2013 2014 2015 2016
2,97% 3,01%
3,54%
4,21%
Share Evolution:
Assortment Differentiation Imported Products
Evolution Share and Assortment:
Next product lauchings: 169
Past year Actual Registered/Bought Total
350 568 169 737
2016 E F M A M J J A S(*) JUMBO 1,27% 1,35% 1,52% 1,89% 2,10% 2,50% 2,44% 2,33% 2,36%
2011 2012 2013 2014 2015 2016
1,02% 0,88%
0,69% 0,71% 0,75%
1,98%
Assortment Differentiation Imported Products
Store’s area: LIVE FLAVOURS OF THE WORLD
Special Flyers: LIVE FLAVOURS OF THE WORLD
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
FIT Company
Operational Efficiency
14.888 14.790
14.584 14.441
14.258
14.869 14.900
14.589
14.088 13.957 13.986 13.956 13.946
jul-15 ago-15 sep-15 oct-15 nov-15 dic-15 ene-16 feb-16 mar-16 abr-16 may-16 jun-16 jul-16
Average number of employees
-6,3%
FIT Company
Focus on productivity Self Check Out
Palermo Martinez Pilar Escobar Madero Harbour Nordelta Tortuguitas
SCO accomplished in 7 stores
FIT Company
Self scanning 45 stores accomplished
FIT Company
Focus on productivity Self Scan APP Mobile QR
Implemented in 16 Jumbo stores
FIT Company
Focus on productivity Rincon Jumbo and Snack ATM
Self- operated Efficient Reduces delays Programmed menu Integrated with the loyalty program
FIT Company
Focus on productivity Self-service scale
106 stores with self-service scales in vegetables 4 stores with self-service scales in bakery (Jumbo) Provide the bakery solution to all others stores.
FIT Company
Productivity Savings in plastic bags’ costs
Disposable plastic bags are currenttly being charged. Ecological check out points: “Priority for those who bring their own bags”. Area for recycled boxes.
FIT COMPANY
Focus on productivity Closing unprofitable stores
Fecha Bandera Región Local06/01/2016 Vea Buenos Aires Remedios de Escalada28/01/2016 Disco Buenos Aires Las Heras 214/02/2016 Vea Córdoba Pilar01/03/2016 Vea Córdoba Rio Tercero28/03/2016 Disco Buenos Aires Virrey del Pino
During 2016, 5 stores were closed.
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
Wholesale Area
1. Monthly validity
2. Changes the brand, not the product
3. Exclusive negotiation
Competitive Pricing
Competitive Pricing
Wholesale Area Expansion
Wholesale Area
Competitive Pricing
Jumbo Family Pack
Competitive Pricing
Family Pack Cordoba
Competitive Pricing
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
Purchasing Experience
Rewards Program Discount Program for VEA customers Exclusive prices and daily discounts. Monthly prize-drawn for purchase orders. Installed in 103 stores. More than 1,2 million of fidelized customers. 58 % share of chain total sales
Rewards programs for Jumbo’s and Disco’s customers. Individualized and segmented customers. In-store exchange: the points can be exchanged by any product The purchase can be partially paid with reward points. Exclusive rewards: Gift, trips, purchase orders. Exchangeable for LAN Pass Km. Exclusive benefits with Special Programs. More than 4.1 million of fidelized customers. 70 % share of chain total sales
Special Clubs “Inside and Outside”
Focused on customers adopting healthy and wellness-related practices:
“Inside and Outside”.
Customer profile:
High consumption of healthy, light and personal care products.
Bi-monthly brochure: publishing content, recipes and discount
coupons.
Recruitment:
• Related segments
• Alliances: Gyms, Yoga and Esthetic Centers
116.656 Nbr. Of members
Purchasing Experience
Special Clubs “You and You Baby”
39.444 Nbr. Of members
The arrival of a new baby is one of the most special moments in life. Because of it, we have created “Club For You and Your Baby”, a special initiative that includes a newsletter with interesting notes, tips, and benefits.
Purchasing Experience
Experiencia de Compra
Special Clubs “Deli & Wine”
32.147 Nbr. Of members
For those who like wines, cheeses, and delicatessen, there is “Jumbo Deli and Wine Club”, a different area to enjoy the gourmet world.
Celiac Area
5.913 Nbr. Of members
• Provides information and a useful assortment of products for
those who are gluten intolerant as suggested by the Argentine Celiac Assotiation.
• By offering attractive sales offers, we have become the place
where gluten intolerant people can make an integral purchase.
Purchasing Experience
Campaing “You don’t pay extra for eating healthy”
Campaing
Store
Flyers
Redes
www.alimentaciontemprana.com.ar
GOAL A brand who facilitates and recommends a HEALTHY
NUTRITION. Targets moms with kids up to 12 years old.
Purchasing Experience
Purchasing Experience
Platfor E-Mailing Responsys
Goal: To combine the information obtained from all loyalty programs, and establish a more personalized and segmented communication. This tool will continue to improve as the “Unique Vision” project advances.
Until Today Today with Responsys
We were sending the same 1 HTML without customer segmentation
We multiply the options We are able to make a delivery considering
sex, age, and consumption. Automation
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
New formats •Showroom between 200 y 350 sq. mts •High transit locations •ABC 1 segments •Specific proposal, focus on Jumbo Fresh. •High presence of imported products •Home-delivery services Convenience Stores
Convenience Stores Jumbo Arenales
New formats
• Arenales 870 • Opening: March 2016 • Showroom: 268 mts2
Groceries Perishables
• Nbrs. Of Checkouts : 3 • Manage with 1 assistant manager and
11 EQ • Opening hours : Mo to Fri :8:30 a
21hs –Saturdays 9 to 13hs –Sundays y Holidays closed
• Commercial proposal Focused on Groceries and Perishables foods
Convenience Stores Jumbo Arenales
New formats
Convenience Stores Jumbo Arenales
New formats
Company Presentation 2017 Strategy
1. To provide high quality perishable foods 2. To focus on assortment differentiation 3. To become a FIT Company 4. To be price competitive 5. To offer a unique purchasing experience 6. To diversify into new formats 7. To be an omni-channel retailer
Omni-channel
Certain Items
Growth Jumbo JUL 16 Accumulated 114% Last 3 months 163%
The beverages and foods market in e-commerce increased 29% (Accumulated July 2016 – Source: CACE.)
E-commerce Pangui WEB
It takes the special offer of the day
Display of promotional products
Display the discounts on the checkout
Omni-channel
E-commerce In-store tickets
Last 10 on-line invoices
Invoices with more than 20 items
One click to buy
Omni-channel
E-commerce New disco.com.ar
Omni-channel
Launched: May 26th
28% of new customers since we launched
50% growth sales since we launched
E-commerce New vea.com.ar
Omni-channel
Launched: August 26th
Strong focus on interior of the country
Press Release: Mendoza on Sept. 22nd
E-commerce Alliance ICBC
Omni-channel
Alliance since April
30% sales share
Sales +165% last 3 months
Home delivery and Pick-up store
Omni-channel
71% Home Delivery Premium service
8% Home Delivery regular service
21% Pick up store
Omni-channel
APP Jumbo Mas
Funcionalidades
To update data
To consult stores locations
To exchange gifts, trips, prizes, and Latam Mileage.
To generate discount coupons to be used in Jumbo and Disco stores
Total Installed: 1.815 Existing Installed: 588 33%
Total Installed 4.303 Existing Installed 2.300
67%
Target: To develop a tool that allows us to have major interaction with our fidelized customers. Implemented on: July, 2016
What ‘s next ?
Omni-channel
Payment with Visa credit card on-line On-line validation VTex for Jumbo.com Disco Delivery Express Jumbo Drive Thru Vea Kiosks
¡GRACIAS!