The year 2013 was a decisive one for consolidating the management model for Via Varejo, leader of the Brazilian retail sector for durable household goods and furniture. The company efficiently executed a strategic plan anchored in sustainable actions to capture synergies, gains in efficiency, operational improvements and expansion of the Casas Bahia and Pontofrio banners. These are strong brands, with capillarity and a complete offering of durable household goods and furniture capable of serving all of Brazil’s social classes.

Via Varejo’s leadership is confirmed by its 26.0% market share among retailers specialized in durable household goods, and 18.7% market share among general retailers (hypermarkets/supermarkets, department stores, and e-commerce) in November of 2013, according to data from the consultant GFK.

The regular and continuing increase in the specialized market share, of roughly 220 basis points over the period from November of 2012 through November of 2013, demonstrates the force of the business, with 999 Casas Bahia and Pontofrio stores in 18 Brazilian states and the Federal District, whose economies accounted for more than 90% of GDP (IBGE 2010). In 2013, the expansion plan saw the inauguration of 41 stores, and entry into two new states: Alagoas and Paraíba.

With more than 60 years of history and tradition in the market for electronics and furniture, the retail chain has roughly 67,500 employees and is a great creator of jobs. In 2013 alone, 2,500 positions were created for new stores and other postings, and training programs were undertaken to develop leadership and enhance engagement, productivity and the quality of service. There were 632,000 hours of training for 97,000 participants over the course of the year. The projects should expand, including to foment the presence of women in leadership positions.

Logistics

Efficiency gains were obtained through changing processes, seeking out synergies and using technology, in each case contemplating increasingly better customer service throughout Brazil.

For logistics in 2013, three distribution centers and depots were inaugurated, thus increasing the numbers to 14 distribution centers with aggregate space of 852,000 square meters, and 9 depots strategically located to regionalize deliveries, both to supply stores and to deliver to customer homes.

Consumers’ buying experiences only end when they receive the product, within the agreed-upon time and in perfect condition. Toward this end, there were simultaneous investments in technology to ensure lower cost and greater agility to meet the average demand of 1.2 million deliveries per month.

One of the tools that was adopted was to send a text message to the customer’s cell phone on the eve of delivering the merchandise, to guarantee the presence a responsible person at the agreed-upon address. With this action, there was a 25% decrease in the number of failed deliveries due to absence, and an increase in customer satisfaction. Technology also was deployed in the routine for assembling furniture. The teams receive tablets to use the check-list for services, solicit materials and reschedule timetables, ensuring better quality for the average of 700,000 assemblies per month.

In order to offer a great variety of products and services at prices that attract the different social classes, Via Varejo maintains tight relationships with its suppliers, including banks and financial and other service companies, and the industry.

The pursuit of synergies also extends to the associated company Nova Pontocom, the second largest company in the Brazilian e-commerce sector, with a market share of 17% at December 31, 2012, according to data from E-bit. Actuation in partnership in such areas as logistics and marketing brings greater efficiency to the businesses and optimizes the growth both of bricks-and-mortar stores on streets and in shopping centers, and e-commerce, reinforcing the multi-channel concept.

Shares on the BM&FBovespa

On December 16, 2013, Via Varejo went public with its Public Offering on the BM&FBovespa (VVAR11), becoming the 21st company to join the Level 2 corporate governance segment. The deal topped R$2.845 billion, constituting the year’s second largest offering in the Brazilian stock market.

Another strategic action was the acquisition of shareholding control of Móveis Bartira, the exclusive provider of furniture for Casas Bahia and Pontofrio. With this deal, Bartira became the first industry in the GPA business portfolio. The idea is to optimize production to ensure good results in marketing residential furniture.

Via Varejo, despite the challenging macroeconomic environment, consolidated its leadership and generated sustainable results. All the actions were effected with dedication, and aligned with the company’s cause: to make the dreams of customers and employees come true, while respecting human and business values.