SUPERMARKETS AGENDA. 1 CHILEAN STATISTICS AND SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP Chile in numbers
GDP Total GDP Population per capita USD 17.7 MN USD 277 BN 15,732
2.9% 48% 4.4% of the total above the of the LATAM LATAM LATAM population average GDP
2014 ECONOMIC INDICATORS
CPI UNEMPLOYMENT GDP
HELP $ Ch$ WANTED
2013 2014 2013 2014 2013 2014 3.0% 3.9% 6.0% 6.5% 4.1% 2.0% Source: Chilean Central Bank (e) (e) (e) (e): estimated 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
SUPERMARKET SALES (IN BILLIONS OF USD) AND STORE GROWTH THE CHILEAN USD 15.6 billion 1372 STORES SUPERMARKET USD 7.8 billion
INDUSTRY 730 STORES
2006 2013
• 6% OF THE NATIONAL GDP *
• 4 MAJOR OPERATORS *
22% 27% • AN AVERAGE OF 85 NEW STORES PER YEAR ** CONCENTRATED IN MEDIUM-SIZED FORMATS OF BETWEEN 1,500 AND 2,500 M2
PORTION OF THE PORTION OF CHILEAN •ANNUAL NOMINAL GROWTH RATE OF 10% ** CHILEAN GDP RETAIL SALES CONTRIBUTED BY CONTRIBUTED BY THE RETAIL SUPERMARKET INDUSTRY * 2013 figures Source: National Institute of Statistics / Nielsen Retail Index ** Average change between 2006 and 2013 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
Market 38%
M 2
35% Market CENCOSUD 27% m 2 M 2
IS SECOND IN 23% TERMS OF Market 16% 11% MARKET SHARE 21%
M 2 Market 26% 7%
M 2
7%
Market 7% M 2 OTHERS
9% % Market Share, 2Q 2014
Source: National Institute of Statistics and 2Q 2014 Press Release % Industry Retail Space in M2, 2Q 2014 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
SUPERMARKETS 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
USD TOTAL SALES LTM 4.0 BN
US$ MONTHLY SALES 619 PER M2
TOTAL SQUARE KEY 533,615 METERS
INDICATORS 30,800 ASSOCIATES
STORES FROM ARICA TO 227 PUERTO MONTT 19 PURCHASES PER MN MONTH 2 LOYAL MN CUSTOMERS
MARKET PENETRATION 13% OF THE CENCOSUD Source: PRESS RELEASE 2Q 2014 CARD 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
REGIONALLY REGIONAL NEGOTIATIONS 1 Working collaboratively with international and regional suppliers HOW DO WE
PURCHASING SYNERGIES WITH OTHER ACHIEVE 2 COUNTRIES · Food commodities EFFICIENCY? · Non-food · Access to suppliers in other countries
PRIVATE LABEL 3 Sourcing suppliers and products at the regional level.
4 MULTI-CHANNEL CUSTOMER LOYALTY PROGRAM Applies across business units
5 BENCHMARKING BEST OPERATING PRACTICES 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
LOCALLY IMPLEMENTATION OF LEAN METHODOLOGY 1 · Process standardization HOW DO WE · Application of the 5Ss · Ongoing associate training ACHIEVE · KPIs to support implementation
EFFICIENCY? PLANS FOR UNDERPERFORMING STORES IN BOTH 2 CHAINS · A multidisciplinary team dedicated to identifying sustainable, replicable opportunities.
3 USE OF TECHNOLOGY •Revamping the check-out system •Workforce Management for managing shifts •Automation of back-office processes •Replacement of checkout scanners 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
SUPERMARKETS TWO-BRAND STRATEGY
ABC1 C2/C3 DE
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
VALUE PROPOSITION.
QUALITY VARIETY SERVICE
PERISHABLE GOODS AS OUR PRIMARY DIFFERENTIATOR:
LOYALTY - PROFITABILITY - INNOVATION
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
SERVICE. OUR COMMITMENTS ENSURE THE JUMBO EXPERIENCE · WE WILL DOUBLE YOUR REFUND · IF WE DON'T HAVE IT, WE WILL GET IT FOR YOU · MORE CHECK-OUT AVAILABILITY
RECOGNIZED BY OUR CUSTOMERS SERVICE EXCELLENCE AWARD FOR THE 7th CONSECUTIVE YEAR 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
QUALITY. ABOVE-INDUSTRY STANDARDS: · HACCP (Hazard Analysis and Critical Control Points) · TECHNICAL DATA SHEET FOR EACH PRODUCT · MANUAL ON USEFUL LIFE (INTERNAL USE) · SUPPLIER CERTIFICATION PROGRAM
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
VARIETY. WE ARE THE SOLUTION FOR ALL CONSUMER NEEDS
· IN-STORE PREPARED FOODS
· IMPORTS (1,700 SKUs from more than 20 countries)
· SPECIAL DIETARY NEEDS (celiac disease, diabetes, high blood pressure) · ORGANICS (vegetables and wine) · PRIVATE LABEL (with more than 1,000 SKUs, the Jumbo brand is the most popular in our stores and a leader in oils) 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
BAKERY. · 2 MILLION KILOS PER MONTH · 52 TYPES OF BREAD BAKED IN EACH STORE
· CONSTANTLY DEVELOPING TREND-SETTING PRODUCTS (CHIA, LOW SODIUM, CHOLESTEROL-FREE INGREDIENTS AND NO TRANS FAT) 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
DELI MEAT PRODUCTION. · 60,000 KILOS OF HOMEMADE DELI MEAT PER MONTH.
· 24 TYPES OF PRODUCTS MADE IN OUR FACTORIES.
· EXCELLENT RATINGS ON TASTING PANELS.
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
BUTCHER COUNTER. · 2,600 TONS PER MONTH
· PERSONALIZED SERVICE AT THE BUTCHER COUNTER
· THE WIDEST SELECTION OF ANY BUTCHER COUNTER IN CHLE: •SPECIAL BREEDS: WAGYU - ANGUS •NATURAL MEAT •UNMARINATED CHICKEN AND PORK •SPECIALTY PRODUCTS • EMOTIONAL BRANDING
• A SUPERIOR EXPERIENCE THAT INSPIRES AND SURPRISES
• RECOMMENDED BRAND
COMMERCIAL 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
VALUE PROPOSITION.
PROXIMITY
CONVENIENCE
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
EFFICIENT SIMPLE LOGISTICS IMPLEMENTATION
CONVENIENCE day after day
SEGMENTED PRODUCT CONVENIENCE ASSORTMENT 7 KEY FACTORS
IMPLEMENTATIONPRIVATE SIMPLE LABEL HEAVY MULTIFUNCTIONAL SIMPLE PUBLICITY STRUCTURE PRODUCTIVITY
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
SEGMENTED PRODUCT ASSORTMENT.
· BASED ON CUSTOMER NEEDS · STORE CLUSTERS (5) · EFFICIENT ASSORTMENT · ONGOING MONITORING 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP
PRODUCTIVITY.
•PRODUCT STANDARDIZATION
•COST CONTROL
•ENSURE AVAILABILITY
•EFFICIENCY CONVENIENCE
.
1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 OUR TEAM
Convenience at every visit.
IN TOUCH BRAND
GOOD DEALS
CHEERFUL
SIMPLE
COMMERCIAL 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP OUR TEAM HAS SOMETHING TO TELL YOU ... 1 CHILE STATS & SUPERMARKETS 2 CENCOSUD SUPERMARKETS 3 JUMBO 4 SANTA ISABEL 5 WRAP-UP THANK YOU.