Results

• Revenues grew 82% during the 5-year project period
• EBITDA grew 285% over the 5 years of the project

Initial Situation

Top local brand in the Supermarket sector. In direct competition with Walmart, but with sales representing only 30% of the Bentonville company’s sales. Management and profitability issues. 4% EBITDA. Progressive loss of market share. Outdated and obsolete corporate image. Presence only in the country’s capital.

The business is acquired by a group of entrepreneurs who own two companies, leaders in their respective industries, but without prior experience in the supermarket business. The new owners hire EREA to support the transformation. EREA participates from the initial acquisition process through the successful changeover.

Project Objective

• Change the company’s image
• Improve the company’s profitability so it can pay corporate debt, distribute dividends, and invest in strong growth
• Gain market share and become the country’s leading supermarket

Methodology

EREA took control of the supermarket with a mixed team composed of trusted executives from the business group and Erea consultants. A 5-year strategic plan was developed (rebranding, internal restructuring, creation of new departments, improvement of the management model and variable compensation, store remodeling, logistics centralization, systems modernization, Client service culture, and an aggressive new-store opening plan).

After 3 years of EREA co-management, the areas were gradually handed back to the Client’s executives.