Deterioration in consumer confidence
Source: GFK Adimark
Perception of the economy Index 1981-2016 Historical series of 36 years**
(Index 0-100 pts.*) Country´s Context,
Chile
*Note: 0 indicates pessimism and 100 indicates optimism. **Note: IPEC index was originally published on a annual basis (1981-1985), afterwards on a quarterly basis (1986-2001) and since 2002 its calculated on a monthly basis
¿What is happening with consumption?
Slight contraction in consumption Higher frequency, lower volume Preferences on Supermarkets vs Hypermarkets Smart shopping Increasingly “promotional” customer Labelling Law
Country´s Context,
Chile
Our SG&A challenges Increase labor costs
Impact of “7° Sunday” new bill Surcharge of 30 % for Sundays workday Minimum wage increase
Electric rate hikes and reassessment
Increased security expenses
Country´s Context,
Chile
OUR POSITIONING Jumbo exists for guests to enjoy and be happy in every shopping
experience
/Functional Benefits • Wider assortment and quality
of products • Better Shopping experience • Greater product availability • Savings through relevant
promotions
DIFERENTIATION
/ Emotional Benefits Trust Gratification Surprise
SERVICE, SERVICE, SERVICE
/ Brand personality Accomplice and ally, empathy Uses its service orientation to transform situations and turn everyday moments in exceptional experiences
/ Target Highend Men and women
OUR POSITIONING Santa Isabel exists to make everyday convenience promise come true for
customers with the seal of Cencosud quality
/ FUNCTIONAL BENEFITS CONVENIENCE - Quality in products and infrastructure - Physical and emotional closeness - Competitive prices with the
best promotions - Promptness, ease purchase process and express checkout
DIFERENTIATION
/ EMOTIONAL BENEFITS •Savings •Coverage •Identification
Everyday convenience, with the
seal of Cencosud quality
/ BRAND PERSONALITY Santa Isabel is cheerful, feminine, close and current. It is a reflection of Chilean middle class women: with a strong practical sense, always ready to give the best to their own. A woman seeking convenience, but without leaving quality apart.
/ TARGET Extended middle class women (C2C3D).
1. Organic Growth:
We plan to open new stores in the format of Supermarkets
and Hypermarkets
Growth in upcoming years will be leveraged in:
Valdivia Viña del Mar
Independencia Arica
La Serena
2. SSS Growth:
Remarcable Campaigns
Leading the shopping experience Products Availability Self-service products Express check out Personalized promotions Jumbo commitments
1. Centralization of productive processes: Bakery Pasta Prepared Food
We continue to seek efficiency initiatives that allow us to operate our business with lower costs and higher profitability
1. Centralization of productive processes : Bakery Pasta Ready Meals
We continue to seek efficiency initiatives that allow us to operate our business with lower costs and higher profitability
1. Centralization of productive processes : Bakery Pasta Ready Meals
We continue to seek efficiency initiatives that allow us to operate our business with lower costs and higher profitability
2. Logistics processes:
Launch of new Perishable DC Implementation of Unit picking Warehouse Consolidation
New perishable DC has a storage capacity of 162,575 boxes and a sorter that can move 90,000 boxes per day, from a total flow of 120,000 boxes
3. Inter-business negotiations:
Safety, cleanliness, shipping freightage, among
others
4. Plans for underperforming stores:
Closed stores and evaluation process for the closing of other stores
Significant profitability improvements in under performing stores Cluster Mix Layout Sub-formats developments Specific promotional activity
Efficiency & profitability
2. Launch of our Mobile App
With our new App Mobile, another channel is opened on our Omnichannel strategy
2. Launch of our Mobile App
With our new App Mobile, another channel opened on our Omnichannel strategy
3. More and better services
Click and Collect (5 stores + 16 new stores), Drive Through (4 stores + 14 new stores)
We continue to offer the best Omnichannel experience to our customers
3. More and better services
Click and Collect in Lockers, located in gas stations, subway, residential sectors, etc.
In the last quarter 2016, we will implement the click and collect in lockers at 4 locations outside our stores
3. More and better services
Shop at the store and Home delivery (4 stores), anytime of the day, 90 minutes after passing through express checkout
Pilot delivery in 2 hours
More flexibility for our customers
Before Now
We will continue working on being active brands on business development, in a sustainable way
3 Pillars define our actions
Quality of life Environmental innovation
Conscious supply
Leaders in working on sustainable business
Quality of life Campaign Cook with all: Education to customers to avoid waste
More parks for Chile: to growth in Green areas and improve life quality of our neighbors
Campaign Eat Healthy: Healthy eating Program
Free From: Product development of specific food needs
Environmental Innovation
Portal Rancagua: 1st store in Chile with a 100% of renewal energy
Clean points development in our stores
Save energy consumption and carbon footprint program
Incentives to use reusable bags to our customers
Leaders in working in a sustainable business
Conscious Supply Working program for small suppliers for the development of differentiation products
Best practices certification for our private label products
Lower environmental impact certification at FFVV products
Work in conjunction with small suppliers to provide preferential payment terms
Leaders in working in a sustainable business
We thank our customers and collaborators, the recognition of our management as a leader Supermarket chain in Chile
Prohumana Jumbo one of the 9 more sustainable companies in Chile
Corporate Reputation (Reputación Corporativa) Jumbo the only distinguish supermarket
Mutual de Seguridad Recognition to Santa Isabel
Procalidad Prize Jumbo 1° Place Satisfaction Customers Supermarkets
Lealtad Prize Jumbo 1° category in supermarkets
Plenus Prize Recognition to Jumbo for employing the elderly