Retail giants invest in logistics and expect Black Friday greater than 2020

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A Black Friday has already become the second most important date for the retail Brazilian, second only to Christmas. The event has become synonymous with deep discounts, and major retailers expect a better performance than in 2020.

One of the main highlights of the event in 2021 is the reopening of the economy, allowing physical stores to function. The 2020 Black Friday was considered the most digital of all times, and for this year’s edition, companies are betting on the combination of digital and physical channels.

At the same time, the date faces some challenges. THE inflation and the high interest rate discourage consumption, while the high gas price makes freight more expensive. There is also the effect on production costs, which have risen with the energy crisis and problems in global supply chains.

However, these problems do not appear to be affecting the optimism of the country’s biggest retail companies for Black Friday.

While retailers with physical stores and websites are betting on merging the channels, those with an exclusive presence on the e-commerce do not expect the reopening to affect sales.

O CNN Brasil Business contacted Via, owner of Casas Bahia and Ponto Frio, Magazine Luiza, Americanas, owner of Lojas Americanas and Submarino, Amazon and Mercado Livre. Check out these companies’ expectations for Black Friday in 2021:

Amazon

The American retailer started its operations in Brazil in 2012, but it was only from 2017 that it became part of Black Friday in the country. Despite not sharing forecasts for the event in 2021, the company hopes to “surprise customers”, says Marcelo Giugliano, retail leader at Amazon Brazil.

The retailer’s Black Friday, which operates in e-commerce, will last 30 hours, with discounts of up to 60% on average and lightning deals. Books and eBooks should be the category with the most discount, up to 70%, followed by Fashion (50%) and Electronics (35%).

According to Giugliano, the company has also invested in logistics, and claims that it will be able to deliver in one day to more than 50 cities, and in two days to 700.

A novelty that Amazon brought to Black Friday this year is the possibility of scheduling purchases. According to the company, in 2020, a tendency was identified for people to use the date to anticipate purchases of gifts for the end of the year.

The retailer’s website also includes the pages “Apoie Empreendedores Negros” and “Apoie Pequenos Negócios”, with exclusive products from sellers in this segment. Amazon also has the Black Friday House page, which features calls live commerce, live streams with offers.

American

Owner of the Submarino website and Lojas Americanas, with physical points of sale and website, 2021 will be the first Black Friday of Americanas since the merger with B2W. The expectation is to have “the biggest Black Friday in history”. According to the company, the bet is to combine physical and digital points of sale.

The idea is to allow customers to buy on the company’s websites and be able to pick up the products in person at a store. About 100 units of American will act exclusively as spaces for picking up orders.

Americanas claims that it will offer discounts of up to 80%, and will have products with cashback of up to 50% if payment is made through the fintech Ame Digital app.

The categories that should receive the biggest discounts are electronics, computers, telephony, games, housewares, bombonière, food, beverages, toys and clothing.

The company also invested in technology in the logistics area to increase efficiency and delivery speed. In addition, she claims that she already has the stocks covered for 2021, with no possibility of a shortage of products.

Via

Owner of retailers Ponto (formerly Ponto Frio), Casas Bahia and Extra, the Via stated that it will offer discounts of up to 80% and installment payments in up to 30 installments on purchases. It will have a store pickup service within two hours of shopping on websites or apps.

The most popular products on the date, according to the company, should be large-screen televisions, smartphones, computers and home appliances.

“At Via, we always see Black Friday with good expectations. We want to repeat the success of 2020 this year”, says Abel Ornelas, the company’s commercial and operations vice president.

The big news for 2021 is that Via’s Black Friday will feature Pix as a payment alternative. In addition new megastore at Casas Bahia, in the city of São Paulo, will open 24 hours between the 25th and the 26th.

Via also stated that it strengthened its teams in distribution centers, and maintained its investment in live commerces. Currently, 43% of purchases are delivered within 24 hours, compared to 40% in 2020, with three new distribution centers.

The company has a marketplace, which went from 10,000 sellers in 2020 to 100,000, which should increase the number of offers and products.

Another novelty is the Via+Mobile application, which allows customers to make purchases and receive payments, without the need for the customer to go through a cashier. Ornelas says that “with the strengthened digital channels, the company is prepared to manage the customer journey in the way he wishes. It can start on the website or in the app, end in the store, or vice versa”.

Free market

Another e-commerce giant, the Free market expects the 2021 Black Friday to be higher than 2020, as the company has already achieved better results than last year.

Roberta Donato, Marketplace director at Mercado Livre, states that “sales of supermarket products grew by 266% compared to Monday and Tuesday of the week of Black Friday in 2020”.

According to her, the areas of food, beverages, pet food and cleaning products are the most sought after by consumers this year. Discounts must reach up to 70%.

The company has three new distribution centers compared to 2020 to avoid delays in deliveries. Donato says that this change was necessary because “the consumer definitely got used to buying online and to the advantages of receiving the product at home”.

Despite the reopening of physical retail, she says that Mercado Livre has noticed that consumers still maintain a high volume of purchases in e-commerce, which is increasing. “We realized that consumers have tested [na pandemia] and enjoyed these benefits.”

Luiza stores

A Luiza stores, or Magalu, has also been investing in e-commerce in recent years, which has included a series of acquisitions. Luiz Fernando Rego, the company’s commercial executive director, says that “the expectation is to always surpass the previous year, and we are confident in that”.

According to him, bets on higher discounts in 2021 are concentrated on premium products, which have high technology. Among them are smartphones, 50-inch TVs and stainless duplex refrigerators.

Rego says that “the impact of the price increase — due to inflation, exchange rate fluctuations and other macroeconomic issues — on these products is smaller”. The company will offer discounts of up to 80%.

The company also guarantees that it has stocks ready for Black Friday and the Natal, since, according to Rego, there was a preparation in advance for the date.

“The physical store plays a fundamental role, mainly in relation to e-commerce logistics. It is through this that we are able to reduce delivery times to customers”, says Rego. Magalu will offer the possibility to withdraw products purchased online from stores.

Like other retailers, the company plans to hold concerts and lives on the date to promote promotions.

Reference: CNN Brasil

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