American retail giant will focus on other store formats, keeping strong brands that already operates in the Brazilian retail market
The Walmart operation in Brazil is about to undergo an unexpected change to the market. Searching to improve the company’s performance in the country, the Advent equity fund, controller of the chain’s operation in the country, will no longer use the “Walmart” brand in the points of sale, starting to call the operation by the name of Grupo BIG.
This way, the group will start to perform regionally, with the local banners. In the South and Southeast regions, the points of sale will be renamed to Big, while in the Northeast the strategy is to use the Big Bompreço name, a banner that is established in the region and acknowledged by the population.
Currently the group counts on the following brands: Big, Bompreço, Mercadorama, Sam’s Club, Maxxi and Todo Dia, in addition to Walmart. With the most famous brand ending, the focus will be on the Maxxi, Sam’s Club, Bompreço and Big operations, for that reason, part of the Walmart stores are being converted.
Somehow, the American retail giant keeps the strategy of the sector’s leading companies, promoting the conversion of hypermarkets, store model that have lost the customer’s interest. Moreover, Walmart’s digital operation was also interrupted last March, but must return its activities offering online sales and food delivery.
From now on, Grupo Big will take over the control of the chain’s operation nationwide after the decision of not using the brand anymore, for strategic and economic reasons.
Therefore, the hypermarkets store formats in the South and Southeast will be called Big, whereas in the Northeast the Bompreço stores will be converted to Big Bompreço. Advent, it is worth remembering, acquired 80% of Walmart in Brazil in the middle of 2018.