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Brazilian Retail NewsYear 11 - Issue # 405 - So Paulo, September, 19th, 2011

Phone: (5511) 3405-6666

Brazilian retail news 109/19/2011

Doug McMillon, CEO of Walmart International,

said to analysts it became necessary to turn to the

every day low price business model in Brazil, as

the chain was facing hard times with the former

high-low discount-based model. One year ago,

the company was struggling to be protable, but

it didnt expect to take so long to implement EDLP.

There are signs the new model is going well, with

a 7% increase in transactions, but the consumer

trafc in the stores dropped about 4%.

Casino increases share in GPA to 46%

French Casino increased its share in Grupo

Po de Acar, Brazils top retailer, to 45.9%, after

Rallye, Casinos controlling company, purchased

3.3 million preferencial shares of GPA last month,

with an option to buy another 4 million in the nearfuture. Before the US$ 130 million transaction,

Casino owned 43.1% of GPA.

Outback Steakhouse close to selling Brazilian ops

Restaurant chain Outback SteakhousesBrazilian operations shall be sold to a foreign

group, according to information published by

economy journalist Guilherme Barros. He said in

his blog Peter Rodenbeck, who brought the chain

to Brazil in 1997, has already agreed to the sale

and the process is in the due diligence process.

Today, Outback runs 31 restaurants in Brazil.

Walmart admits troubles in its Brazilian branch

Brazilian retail sales up 7.1%

Figures reported by the ocial statistics agency

IBGE show in July Brazilian retail sales rose

7.1% over the same period last year, leveraged

by a 21.4% rise in the Furniture and Electronics

segment. The supermarket segment, the mostimportant in the countrys retailing, once more saw

its sales rise below average, with a 4.5% year-on-

year sales.

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Brazilian Retail NewsYear 11 - Issue # 405 - So Paulo, September, 19th, 2011

Phone: (5511) 3405-6666

Brazilian retail news 209/19/2011

The frst global generation

Marcos Gouva de Souza (mgsouza@gsmd.com.br), CEO, GS&MD Gouva de Souza

Momentum

Generation Y is the rst one that can be considered as global, as its attitudes are similar all over the world, asa consequence of an element of behavioral sameness that come as a consequence of the incorporation of theInformation Technology, computers, laptops, mobile phones, tablets, the Internet and social networks, shapingbehaviors and thoughts.

In several ways, the behavior of the various generations of consumers have always been a reference to segmentand study the evolution of attitudes and behaviors as a result of the moments of several societies and their social,political and economic factors. Specially, the benchmark used to be the United States, adapting its reality to othercountries and markets.

In time, there were identied the baby boomers, the ones born in the 50s and 60s, as the generation createdin the post-WWII in the United States; followed by Generation X, born in the 60s and 70s; and, later, by theGeneration X, born in the 80s and 90s and today between 18 and 31 years-old. If the boomers were impactedin their evolution by the television, the X Gen saw the birth of the internet. The Y Gen consumers are the moreimpacted in their behavior by the massive expansion of the access and use of the Web and by the growth ofsocial networks.

And these are two pivotal factors, the drivers of a universal behavior of consumers worldwide, a process thatdidnt occur with the former generations, due to economic, social, political and geographical differences.

The Citizens of the World of the Y Generation are the Neoconsumers, as we were able to identify in the twoeditions of a global survey held by GS&MD Gouva de Souza and Ebeltoft Group in 2009 and 2011. And it allpoints to the fact that, as time goes by, clearer will be this universal behavior, dened by the evolution of accessand use of the internet and social networks.

The Generation Y accounts for the most part of the estimated 750 million Facebook users, and 50% of themaccess this social network at least once a day and have an average of 130 virtual friends, with whom they exchangeinformation, references and opinions, creating a level of relationship and direct intercommunication unimaginablein any other moment of history. This, per se, is the pivotal element of the global behavioral alignment, due to thedirect and constant connection of these people.

Different of other generations, this communication is multidirectional. Instead of being recipients of a predominantlyone-way communication coming from the traditional media, this generation, unlike any other before, has the powerof interacting. And it makes all different.

Relevant traces of the behavior of this generation and more and more present in several countries, partly shapedby the access to broad, general and global information made feasible by technology, are a stronger sense ofindependence, as consumers can go, by themselves, deeper in what they want; and a critical spirit driven by theopportunity of free-speaking brought in by the multichannel digital communication tools.

The same way and for the very same reasons, this generation is more multitasking. On the other hand, however,they become more supercial and instant in their behavior, what reects in their shopping and spending attitudesand habits, and also in their preferences by brands, stores and sales and relationship channels.

Thus, more and more the solutions created by brands, retailers and service providers worldwide will be morelookalike, as the demands will tend to be more aligned. On the other hand, some of the more present characteristicspoint exactly to more customized and specic propositions.

In the store environment, more specically, the Generation Y consumers have a consumer behavior that bringsall this information acquired, shared, criticized and referenced by the internet and social media, leading to newand more creative solutions for the stores, that have been converting, more and more, in points of relationship,convenience, learning, information, services and experience.

Brazilian Retail News (BRN) is a weekly newsletter published by GS&MD - Gouva de Souza with the most important news

on the Brazilian retailing. The content can be freely used, once the source is quoted. If you want any information on BRN or ourservices, please send an email to publicacoes@gsmd.com.br or access GS&MD - Gouva de Souza at www.gsmd.com.br.

Gouva de Souza & MD Desenvolvimento Empresarial Ltda.

Av. Paulista, 171 - 10 oor

Paraso So Paulo Brazil Zip Code: 01311-904

Phone: (5511) 3405-6666 Fax: (5511) 3263-0066