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Retail >> Almacenes Exito SWOT Analysis:
Strengths
  • Dominant position in Colombia
  • Limited competition. There are few acquisition targets as the food retail sector in Colombia is highly informal (60% mom & pops)
  • Diversification in formats and target customer
  • Strong brand and format recognition - top of mind
  • Geographical coverage
  • Corporate governance
  • Strategic alliance with foreign partner (Casino)provides exchanges of best practices
  • Strong client base in loyalty program
Weaknesses
  • Manageability with too many formats and brands
  • Duplicated administrative structure with the acquisition of Carulla- Vivero
  • Outdated stores in need of remodeling
Opportunities
  • Strong economic environment in Colombia boosting the consumer sector
  • Increasing purchasing power from families and easier access to credit should increase consumption of higher value-added non-food items
  • Population is expected to migrate from shopping in informal to formal retail
  • Small portion of the population with access to banking and credit services
  • JV with Bancolombia to boost traffic to stores, ticket as well as increase ROE with the introduction of additional products such as insurance and personal
     loans.
  • Follow-on providing funds to accelerate further
     expansion and store remodelings
Threats
  • Improving consumer stance in Colombia is attracting
     new entrants to the retail sector (Carrefour and Falabella from Chile)
  • Brand repositioning could exclude some loyal customers
  • Downturn in Colombia's economic stance could limit potential growth of the retail sector
  • Diversification of business could divert focus

History: Version 2 (Newest), Version 1 (Oldest)



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