The momentum of the cash and carry system in Brazilian retail, the gradual arrival of the model in Latin America and the importance of automated management in stores and e-commerce were the main themes that businessman Irineu Fernandes, Chairman of GIC Brasil, presented at an event in Colombia. Founder of the Brazilian innovation and technology company, the talk in Colombia was the first stop on his trip to Latin American countries to visit retail chains.
The Retail del Futuro congress took place on 3 and 4 May in Cali, organized by the National Federation of Retailers (Fenalco). It is one of the most important retail events in Latin America, with national and international speakers. Fernandes, author of a book on food retail, was invited to speak at Fenalco for the second year running. Last year, he presented at the Góndola fair in Cartagena de Indias.
The cash and carry format has been growing in Brazil over the years and is on its way to accounting for half of all food retail in the country. It currently accounts for 44% of this segment, according to data from Nielsen IQ. Other Latin American countries are starting to adopt the model, but its expansion is still relatively modest. The entrepreneur also mentioned two trends he sees: the growth of larger purchases in cash and carry and the advance of proximity stores, for smaller, everyday purchases.
In both cases, he points out, it is essential to have technology and management systems to monitor everything that happens, as any loss of control can have extremely negative results.
“The cash and carry system cannot be run like ordinary retail. Cash and carry stores offer fewer products, fewer services and larger purchases, with controlled costs and lower prices. Food retail stores, on the other hand, offer more items and services, resulting in higher costs and higher prices,” he explains.
Technology has been a revolutionary factor in retail operational efficiency. That’s why, after the lecture by the entrepreneur and author, a case study was presented of the Imec retail group, based in the southern region of Brazil. The group implemented one of GIC Brasil’s automated management solutions for the movement of products, people and processes and reaped positive results in record time. The chain’s out-of-stock rate, which was over 20%, was reduced to below 5%.
Irineu Fernandes, born in São Roque (SP), had his first contact with food retail when he helped his parents with the farming and was responsible for the household shopping. After working in technology, he specialized in industrial and retail automation, implementing the first WMS – Warehouse Management System in Brazil. He founded GIC Brasil, a company that brings technological innovation to large food chains in Brazil, Latin America (Colombia and Panama) and Africa (Angola), with customized solutions.
