Supermarkets go global

One indication that domestic demand is on the rise for Colombian agriculture products and industrial goods is the growing success of the nation’s retail and distribution outlets, the most remarkable of which has been Carulla Vivero.The company was formed last year following a merger between the neighborhood supermarket chain Carulla and the giant hypermarket Almacenes Vivero, 30% of it owned by the U.S.-based financial firm New Bridge. Within the next two years it has plans to expand into the Venezuelan and Ecuadorian markets.

SAMUEL AZOUT PAPÚ President of Carulla Vivero

“Carulla Vivero is the second largest retail company in Colombia, with 148 stores and sales of $600 million and around 10,500 employees,” notes Samuel Azout Papu, the company’s president. This year’s sales are expected to rise by nearly 50%, he adds.
Mr. Azout points out that the company’s success is a result of its strategy of creating a multi-format concept with three different types of centers, Carulla, Vivero and the Merquefacil outlet, which is geared more towards discount shoppers and the lower income groups.
This format, along with the company’s young and well-trained staff, has helped the company stand up to stiff competition from multinationals like Makro and Carrefour. “Our multi-format model allows us to be more versatile and quick to reach different types of clients and markets than Carrefour, for example. Not only do we have the agility to make rapid decisions to seize opportunities, but Carulla Vivero also has more retail outlets that any other company in the sector,” Mr. Azout Papu explains.

The exterior architecture illustrates the high quality of the most important chain of supermarkets and supercenters, providing excellence to all Colombia with over 80 stores.

Competition is welcomed in this sector, says Mr. Azout, as it “forces us to be better, improve business technology and globalize our development. But the most positive effect is that the Colombian consumer will get better service, lower prices and higher quality. Having such sophisticated competitors like these new operators forces us to be at the top of our game in order to maintain our share of the market.”