12 16-2011 - arezzo&co investor day - expansion presentation
Transcript of 12 16-2011 - arezzo&co investor day - expansion presentation
1
| Apresentação do Roadshow
1
Arezzo&CoArezzo&CoArezzo&CoArezzo&Co Investor DayInvestor DayInvestor DayInvestor DayMultiMultiMultiMulti----channel Expansion channel Expansion channel Expansion channel Expansion
Alexandre BirmanCOO
2
| Market Overview
Market Overview
Note: 2010 market estimate based on the GDP and population’s growthSource: (1) POF-IBGE; (2)Euromonitor; (3) POF-IBGE/ABEP
BRL Bn 2010
0
20%
40%
60%
80%
100%
Clothing
Shoes
Accessories
Men
Women
Kids
Sports
Others
91.1 35.4
Clothing, shoes & accessories market
Shoes market per category
C
DE
B2
A
B1
10.3
Women shoes market per class
Arezzo&Co’s consumer market in a broader context
3
National Panorama
Source: IBOPE Inteligência (Pyxis)
Consumption of Women Shoes by region (2009): Market share Arezzo&Co1
Regional disparities in the consumption of women shoes
Southeast region, Brazil’s most prosperous region, corresponds to 51% of the consumption of women shoes
6%
19%
8%
16%
51%Shoes Market (BRL billion)
29.7 31.032.9
35.4
8.6 9.0 9.5 10.3
2007 2008 2009 2010
+4% +6% +8%
2007 2008 2009 2010
4.7%
8.1%8.6%
11.1%
Women ShoesTotal Shoes
Arezzo&Co has significant portion of women's footwear market and has consistently expanded its market share
4
| Business Model
Construction of the Openings Pipeline
1
2
■ Stores and multibrand performance■ Opening of shopping centers and monitoring streets with potential■ Macroeconomic evaluations:
■ IPC index consumption + IPCC index consumption of shoes
Signs of opportunities
■ Location■ Physical space■ Mix of neighboring stores■ Analysis of the generation of flow of the primary zones■ Analysis of the competition
New POS Trial
Respect for the minimum return premises3
Arezzo&Co follows a detailed process in the definitio n of pipeline opportunities
6
Renovations and Expansions
Store area
Reveue growth post-expansion:
104%²AFTER
BEFORE
70m2
34m2
Expansion of the stores in 9M11 Renovation Schutz – S hop. Higienópolis¹:
■ 3 owned stores ■ 9 franchises
12 stores expansions
Almost 400 m² in 9M2011
New stores have 80 m² in average
All experiences have reached positive sales results
Note:(1) The stores were renovated in August 2011(2) Comparison between the sales results from August to November 2011 and August to November 2010Source: Arezzo&Co
Stores increasingly more attractive, offering a sup erior shopping experience
7
| Growth Strategy
Multibrand Strategy
9
Illustrative Image
Note :Number of stores for the 3T11(1) Singlebrand StoresSource: Arezzo&Co
MULTIBRAND
¹
¹
¹
¹
290
14
6
1.780
1
Stores with high capillarity, reaching more than 14 0 cities and prominent position among retail companies
Arezzo Expansion Strategy
199 218 240 266 27357
9
1317
2007 2008 2009 2010 3T11
252
13
3T10
204225
279265
290
14%
11,301
12,723
14,070
16,283
13%
11%
16%
15,518
17,625
249
Source: Arezzo&Co
■ Renovation and expansion of the same stores
■ Growth of the grid
Support the strong expansion of the sales area in r ecent years
2012...■ Evaluate the implementation of Project GTM for Arezzo
■ Review brand’s distribution goals
10
Drivers of growth:
Schutz Expansion Strategy
Multibrand distribution
Singlebrand and Multibrand distribution
Source: Arezzo&Co estimates
Expand the national presence of the Schutz brand, le veraged by singlebrand stores
FOCUS ON THE OPENING OF
STORES
Large cities
Focus on shoppings centers
A/B1 Public
11
Multibrand market analysis
Example – “South” Coordinator■ Smaller territories for salespeople and expansion of the team
■ Regional Coordinators
■ Consultants in areas with greater concentration of stores
■ Representatives in less dense areas with growth potential
■ Incentive to the prospecting of new clients and higher frequency of visits
■ Respect to geographic limits (e.g. mountain regions) and greater control of travel costs
■ Internal targets of cities met, number of clients and sales per client
12
Arezzo&Co evaluates each microregion of Brazil in orde r to identify the potential of sales and the best distribution strate gy
Expansion Guidance Update – Arezzo&Co
Source: Arezzo&Co
# Owned stores
# Franchises
275
3T11 2011
36
311
267
2010
29
296 87
16
7
291
43
334 47
11
2012
338
54
392
+5%
+7%
+17%
■ We strengthened our commitment to the opening of 38 stores in 2011
■ By Q311, the existing stores were expanded by 391 m², in line with the 1,000m² objective by 2012
■ We expanded the 2012 guidance by 20 stores, mainly due to the GTM project
13
Strong franchise growth plan, with a large part of the 2012 plan already identified
Detailing of the Openings
14
17
58
9
3
9
Prospecting InitialNegotiation
IntermediateNegotiation
AdvancedNegotiation
Contract Signed
Total
20
1 2
Arezzo&Co Stores 2011
Notes:1. Intermediate negotiation: franchisee or point defined2. Advanced negotiation: franchisee and point defined3. Company estimates
New Operators
26%
CurrentOperators
74%
Stage of Opening of Owned Stores and Franchises Are zzo&Co (2012)³
Regional Distribution of Arezzo&Co Stores (%)
Operators Profile
Arezzo&Co Stores 2012 3
PIB: 5%
4% 6%
PIB: 9%
7% 7%
PIB: 17%
15% 14%
PIB: 13%
20% 17%
PIB: 56%
54% 56%