SUPERMERCADOS PER Economic and political context 02 Per at a - - PowerPoint PPT Presentation

SUPERMERCADOS PERÚ Economic and political context

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02

+2.3%

GDP

1H 2017

1.3pts

Country Risk

Lowest in the region

• Climate phenomena:

Coastal ‘El Niño’.

• Political noise:

Odebrecht case.

3.2%

Inflation

August 2017

• Government

has contemplated an economic reactivation plan focused on the increase of Public Investment.

13,600

MM USD

• Business confidence indicator, over the 12-month

economy, is at its highest.

71

points

• Private investment forecasts suggest it will return to

positive figures from 3Q 2017.

0.8%

• Peruvian economy will grow 2.2% in 2017, improving

its performance in the upcoming years.

+3.9%

GDP 2018

+4.0%

GDP 2019

• The Central Reserve Bank of Peru has trimmed its

benchmark interest rate to encourage consumption and investment.

3.5%

Source: BCRP, BBVA, JP Morgan, MEF

Public Investment approved for 2018 Macroeconomic Expectations Central Bank Aug17 Benchmark interest rate Sep17 Private Investment FCAST 4Q 2017

• Consumer confidence indicator remains in the

pessimistic side for the sixth consecutive month so far in 2017.

47

points

Perú at a glance

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Strategic Goals 2017

Become leaders in Omnichannel experience Leading Corporate Social Responsability brand

1 2 Global Trends Customer Profitability

Focus on profitability through a more efficient operation

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Favorite supermarket based on consumer responses/ Improve shopper experience

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Market Share Leadership

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Metro Mutiformat Strategy Become one of the best workplaces in the retail industry

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GLOBAL TRENDS Omnichannel

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01

E-commerce

Leader at Perú

• 60.9% Share
• +80% participation in WONG vs 2016
• The best NPS of the market (Mar17 Arellano Marketing)

1st and only Supermarket…

• With 100% Coverage - Lima Metropolitana
• With solution of purchase and couponing – Mobile App
• With Kiosks & “Wong al Auto”

Closer to the customer

• Supermarket with more C&C points
• Georeferenced
• Customized Content

‏Consistency at all points of

contact

01

E-Commerce Improvements

Metro.pe Kiosk assisted sales “Wong al Auto” Wong App

Corporate Social Responsability

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GLOBAL TRENDS

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RSE

02

Employees Community Suppliers Consumers Environment

Sustainability Report 2016

CUSTOMER Favorite Supermarket

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03

Customer

BONUS card - % Share

Loyalty Program +22% +8% +12%

• 3%

+20% +12% +3%

• 8%

Identified Sales Transactions Average Ticket Customers Identified Sales Transactions Average Ticket Cusotmers

(*) Data from the Last Quarter

Relaunch Bonus Program incorporating new features and benefits:

• Electronic Purse (Mastercard)
• Mobile App
• 2.2 Bn Identified Customers
• Program allows actions aimed at Top Customers:

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Loyalty Program

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601k 1.6 Bn

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03

Couponing

PISO DE VENTA APP KIOSCO

• With a reach of up to 85% of Customers and increasing rate of redemption
• BIG DATA Project: unification of database, customer leakage & pricing model, social

mining, 360 customer analysis and machine learning

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Becoming the Favorite supermarket

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• Supply Chain
• Outsourcing 100% nonfood logistics with DINET operator
• Automatic Replenishment: 70% Food Grocery Suppliers.

 Goal 100% Oct17

• Implementation FMG Audit
• Availability levels: 97%
• Improving our Product Proposal
• 59 product development projects under our own brands

during 2017

• Succesful launch of 32 projects 1H 17
• Going towards 20% of Market Share (3Q 16%, +4ptos vs 1Q

2016)

• Standardizing brands throughout the 5 Cencosud countries

Market Share Leadership CUSTOMER

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Store Expansions & Renovations

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Wong Asia Wong La Planicie Wong San Miguel  Stores built to the highest standards and latest worldwide supermarket design trends  Larger, more comfortable and more tech-savvy stores  Important Project Bank: 8 new supermarkets and 12 renovations

CUSTOMER Multiformat Strategy

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Multiformat - Stages

S T A N D A R D I Z E S I M P L I F Y

Be at the DIFFERENT Shopping Missions

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Express Corner

Implementation Metro Plaza Lima Norte: March 2017 On going +5 stores Implementation Wong San Miguel: July 2017 On going +3 stores

CUSTOMER Become one of the best workplaces in the retail industry

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#YoVoyPorLaFelicidad (#IGoForHappiness)

1st Place - Retail 1st Place Ethics & Integrity2017 128 initiatives 29 nominees 112 awarded 68% (2012) 80% (2016) Courses E-learning 10519 More than 15 thousand Beneficiaries (collaborators and relatives) 9783 participants Inclusion Program

“PROFITABILITY” Focus on profitability through a more efficient operation

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Cost Efficiency Project

22 weeks 4 Consultants GEC 1 CFO + 1 CdG 10 average trips per consultant 9 committees with management + de 200 specific expenses >50 analyzed accounts Restructuring of 7 areas S/. 650 MM in expenses analyzed

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07

Self Scanning

• Implemented at 11

Metro stores

• 7% Sales Share
• 15% Transactions Share

Self Checkout

• Implemented at 1 Wong
• 8% Sales Share
• 12% Transactions Share.

Self Service Culture

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07

Tikray

Transactional POS Business Intelligence

• Transformational Program: transversal to the

whole organization of Supermarkets Peru

• The total investment is US$ 30 MM
• 1st stage in progress: Implementation of new ERP

system SAP 6.07 Hana, executed by IBM company