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Post by livinginmedellin on May 12, 2016 6:31:05 GMT -5
Exito today opens its first wholesale warehouse store in Colombia located in Bogotá. This is the first Surtimayorista store of Exito with a cash and carry format (pay and carry), which officially opens on Thursday. The model is brought from the Brazilian subsidiary Assaí and targets the institutional and wholesale market and generates optimism with the company because they expect sales of 62,500 million pesos at the end of 2016. Shopkeepers, hotels, restaurants that have volume buying needs, is the target audience for this format. "It's a gamble for the wholesale distribution of supermarkets, that the location of the place (in front of Corabastos), forces us to compete with low prices," said Carlos Mario Diez, president of retail operations in Colombia for Exito. The only line that will be attended by store personnel is meat, poultry and fish, the rest of the store shoppers are expected to be self-sufficient and will not have any attention to the time to pack and carry out the purchase. Similar to PriceSmart and Makro, shoppers will be expected to pack their purchases and bags are not provided. imported format Facing the business model, Diez said that the Exito Group is not inventing anything and only took the Brazilian expertise to bring the model to the country, making some adaptations to the needs of the Colombian market and looking to grow as in Brazil. "The Assaí brand, from which we get the idea has been growing 36.5% annually and has 96 stores. This first Surtimayorista store in Bogotá, will serve as a pilot for the second half of the year, so that in 2017 the plan is to open at least three others in Bogota in the first half of the year. Regarding the expansion of the model to other cities, Diez said it will be next year when a decision is made, although planning is contemplated to continue to the Atlantic coast and then Medellín. One of the features is that almost all of its warehousing is above the products displayed, its construction allows low energy consumption, does not use plastic bags and is open from 4 am to 7 pm. See (in Spanish): www.elcolombiano.com/negocios/empresas/grupo-exito-inaugura-su-primera-tienda-mayorista-en-colombia-DF4124948Here's the Surtimayorista website: www.surtimayorista.com/es/Looks like Medellín won't get one of these new Surtimayorista stores for another two years - see (in Spanish): www.elcolombiano.com/negocios/grupo-exito-importo-formato-brasileno-de-assai-LD4126836Clearly Exito is seeing pressure from PriceSmart and Makro in Colombia so they are now planning to open similar warehouse style stores.
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Post by billforce on May 12, 2016 13:43:39 GMT -5
Clearly Exito is seeing pressure from PriceSmart and Makro in Colombia so they are now planning to open similar warehouse style stores.Greed? Exito can't stand to see some other group make a buck.
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Post by dandl93 on May 12, 2016 15:18:45 GMT -5
Who are the fools that pick the locations for these places? Pricesmart is in the worst location it could be in Bogota.Now this place is in front of Corabastos which is a nitemare any time of day to get into or out of.The meat and fish markets in Corabastos will be very tough to compete against all their products come in and go out the same day.
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Post by livinginmedellin on May 12, 2016 15:59:19 GMT -5
Who are the fools that pick the locations for these places? Pricesmart is in the worst location it could be in Bogota.Now this place is in front of Corabastos which is a nitemare any time of day to get into or out of.The meat and fish markets in Corabastos will be very tough to compete against all their products come in and go out the same day. Yes pretty brain-dead location decision to me. It also looks like PriceSmart looks to favor low cost locations - similar to in Bogotá, the PriceSmart location in Medellín isn't a very good location either. I don't know where Exito will find a location in Medellín for a big Surtimayorista store? Exito will be left with the "runt of the litter" in terms of location.
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Post by gallito on May 12, 2016 16:17:05 GMT -5
...then there's Alkosto and D1 as mentioned previously.La pelea por la canasta familiar continura.
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Post by dandl93 on May 12, 2016 17:15:03 GMT -5
The new pricesmart in Chia is going between Chia and Sopo.These type of store dont need to be down town in the middle of traffic jams.Their customer base have cars and will drive to get there, these are bulk stores you need a car to get all the stuff home.
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Post by scumbuster on May 12, 2016 18:47:14 GMT -5
Do they have a place picked out for the pricesmart? I had heard it was going to be in the mall but that didn't come about.
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Post by dandl93 on May 12, 2016 21:35:00 GMT -5
Do they have a place picked out for the pricesmart? I had heard it was going to be in the mall but that didn't come about. Already being built should be open end of sept.It is on the road between Chia and Sopo about 1km before the castle park
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Post by fishhead on May 12, 2016 22:30:33 GMT -5
Greed? Exito can't stand to see some other group make a buck. What now? Turning against good old fashioned captitalism?
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Post by billforce on May 12, 2016 23:07:00 GMT -5
Greed? Exito can't stand to see some other group make a buck. What now? Turning against good old fashioned captitalism? Not on your life fishbrain but I have seen this trend over and over in Colombia, first in Pereira the Medellin. As soon as any business is successful in any venue others will move in on you even right next door then guarantee that neither is a success. Tell me you haven't seen the same, whether Hot Dog's or Tires, as soon as other see you are successful then they move in. Nothing to do with Exito, my wife's family are major shareholders in the company but right is right and wrong is Colombia.
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Post by billyb on May 12, 2016 23:51:42 GMT -5
Greed? Exito can't stand to see some other group make a buck. What now? Turning against good old fashioned captitalism? Nothing to do with Exito, my wife's family are major shareholders in the company. Wow, didn't know Exito was a medical corp. You learn something new every day.
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Post by scumbuster on May 13, 2016 5:37:34 GMT -5
billforce Maybe its been so long since you have been in the US you don't remember.. They imported this from the US. Here you regularly find a Lowes across the street from Home Depot, Applebee's or Chiles, Olive Garden side by side. A Chevy dealership across from Ford and Nissan just a block away. It makes businesses become more competitive on pricing and service. I would say we need more of this in Colombia because service is lagging far behind. Just down the road from me here in Dallas in Arlington there is a street (I call it restaurant row) with every chain restaurant known to man in about a 2 mile stretch. I really don't think if you were going to open a new restaurant in this area you would want to build it on a side road away from all the others.
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Post by billforce on May 13, 2016 12:24:40 GMT -5
Why NOT build it away from other restaurants, the two most successful restaurants I know of are isolated far away from other restaurants IE: El Roble in Quindío, there is a line to get in 7 days a week......why? Because they are the BEST, that's why and everyone knows it. Build a better mousetrap scenario?
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Post by Deleted on May 15, 2016 3:53:03 GMT -5
Why NOT build it away from other restaurants, the two most successful restaurants I know of are isolated far away from other restaurants IE: El Roble in Quindío, there is a line to get in 7 days a week......why? Because they are the BEST, that's why and everyone knows it. Build a better mousetrap scenario? This applies if you are the best. If you are just "good enough" (and that's the general market rule: Being good enough), the cuckoo strategy applies well.
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Post by búfalo on May 15, 2016 11:58:58 GMT -5
A line to get into El Roble every day of the week? C'mon already... That is also a one off place, not a chain.
Look at what SB said.
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Post by billyb on May 15, 2016 12:10:30 GMT -5
billforce Maybe its been so long since you have been in the US you don't remember.. They imported this from the US. Here you regularly find a Lowes across the street from Home Depot, Applebee's or Chiles, Olive Garden side by side. A Chevy dealership across from Ford and Nissan just a block away. It makes businesses become more competitive on pricing and service. I would say we need more of this in Colombia because service is lagging far behind. Just down the road from me here in Dallas in Arlington there is a street (I call it restaurant row) with every chain restaurant known to man in about a 2 mile stretch. I really don't think if you were going to open a new restaurant in this area you would want to build it on a side road away from all the others. 6 Clustering is a time honored business practice in the USA. That's why most car dealerships are located in "auto rows".
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Post by Deleted on May 15, 2016 12:22:12 GMT -5
Greed? Exito can't stand to see some other group make a buck. What now? Turning against good old fashioned captitalism? Not on your life fishbrain but I have seen this trend over and over in Colombia, first in Pereira the Medellin. As soon as any business is successful in any venue others will move in on you even right next door then guarantee that neither is a success. Tell me you haven't seen the same, whether Hot Dog's or Tires, as soon as other see you are successful then they move in. Nothing to do with Exito, my wife's family are major shareholders in the company but right is right and wrong is Colombia. Let me understand, you believe in Capitalism, but you don't believe in competition.
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Post by Deleted on May 15, 2016 17:32:53 GMT -5
Not on your life fishbrain but I have seen this trend over and over in Colombia, first in Pereira the Medellin. As soon as any business is successful in any venue others will move in on you even right next door then guarantee that neither is a success. Tell me you haven't seen the same, whether Hot Dog's or Tires, as soon as other see you are successful then they move in. Nothing to do with Exito, my wife's family are major shareholders in the company but right is right and wrong is Colombia. Let me understand, you believe in Capitalism, but you don't believe in competition. "No competition" is actually the dream of any CEO.
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Post by gallito on May 15, 2016 18:09:40 GMT -5
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