Despite the difficulties faced by Brazilian retail during the year 2024, such as inflation, high interest rates, household indebtedness and the need for adaptation to new technologies and consumer habits, some companies in the sector performed very positive performance.
A good example is the Casas Bahia Groupwhich completes in 2025 two years since the implementation of its transformation plan, led by CEO Renato Franklin. In a challenging period for the retail sector, the company focused on the recovery of profitability, financial discipline and the strengthening of its Core Business, consisting of electronics, white line and furniture.
Since assuming the presidency in May 2023, Franklin has led a strategic movement named “Back to the Basic”, adjusting the cost structure and improving operational efficiency. As a reflection of these changes, the company registered five consecutive quarters of improvement in operational profitability and reached its best cash generation in five years, reaching R $ 1.2 billion in the fourth quarter of 2024. Liquidity exceeded the mark of R $ 4 billion, strengthening the financial base for upcoming growth cycles.
Consistent strategies
One of the main advances of this period was the restructuring of the credit, Casas Bahia’s historical differential. With the creation of a Credit Rights Investment Fund (FIDC) and the digitization of financing, the company has expanded access to credit with governance and technology. The company’s credit portfolio reached a record of R $ 6.2 billion, driven by the digital booklet and new payment modalities.
The restructuring of the operation also brought expressive gains. Since 2023, the company has optimized its physical network, with the closing of below -expected performance stores and adjustments in the logistics mesh. In parallel, it reduced administrative spending and improved its marketing strategy, balancing investments to expand efficiency without compromising consumer connection.
The omnical model also gained strength in the period. Marketplace (3P) grew 15.6%, while the Casas Bahia ADS platform has consolidated itself as a relevant channel to connect suppliers to the company’s digital and physical ecosystem. In physical retail, sales in stores grew 16.1%, with emphasis on a 16.7% increase in same sales (SSS) sales. E-commerce, which had been recording challenges in recent years, has shown a trend reversal with a growth of 1.6%.
A new cycle
In addition to operational and financial adjustments, the company reinforced its brand identity. The return of the slogan “total dedication to you” symbolizes this proximity movement, reflecting a new moment for the relationship with consumers.
Now the Casas Bahia group prepares for a new sustainable expansion cycle, focusing on profitable growth. The company studies strategic opportunities in medium-west and northeast cities, maintaining financial and operational discipline. “We ended 2024 with significant advances, consolidating a new phase of sustainable growth. With rigorous discipline and execution, we are ready to capture value and further strengthen our position in Brazilian retail in 2025,” says Renato Franklin.
With a strengthened financial structure and adjusted business model, the company is still focused on innovation and efficiency to boost its competitiveness in the retail sector.
This content was originally published in a retail group sustainable expansion on the CNN Brazil website.
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
