Colombia: Retailer Olympic will enter the Hard Discount business

Updated: Sep 6

Colombian Retail Chain Olympic will enter the Hard Discount business model, better known as hard discount stores. Announced in a statement of the Barranquillera company in alliance with Plan B Investments S.A.S., it will be setting-up a new concept of discount stores.


As indicated, this model will have resources of US $ 60 million to guarantee the proper process of growth and consolidation of the new chain.


In addition, they hope to get support, initially from former employees, suppliers and owners of real estate linked to the Justo & Bueno store chain.


“Since last Thursday, August 4, the date on which the definitive liquidation of Mercadía S.A.S (Justo & Bueno) was declared, different plans and actions are managed with a view to ensuring the start of commercial activities in satisfactory conditions, and especially with an attractive value proposal that will make the experience of buying customers pleasant,”s aid Olympic, through its official statement.


Likewise, Olympic said that depending on the number of stores with which the operation of this new discount store model begins, it is estimated that at least 3,000 jobs will be recovered and that about 10,000 jobs are also generated.


"To the extent that these processes advance, complying with the rules of liquidation, we will inform the consolidation of these initiatives that seek to protect the company and employment," said the Barranquilla origin company.


Under this line, the firm also announced that it has established an emergency fund for $ 1 billion with the purpose of attending the pressing cases of former collaborators immediately and during the next month.


History

It should be remembered that the Olympic supermarket company has more than 60 years of being operating in the national market and with extensive experience has managed to consolidate 400 stores distributed in 118 municipality in 21 departments, which has led them to position themselves as one of the largest companies in Colombia.


At present, this chain is part of the Olympic Business Group, a conglomerate that has different approaches, which highlights the Serfinanza Bank, Olympic Drugstores, Barranquilla's Junior, the Stereo Olympic radial chain, Sonovista Advertising, among other businesses .


According to the list of the 1,001 supersociedad companies, the Olympic Superthiendas and Drugstores chain reported operations in 2021 for more than $ 6.6 billion, occupying the number 18 position of the list.


Business panorama

Undoubtedly one of the businesses that has been growing in the country in recent years is that of discount stores, and after the departure of the Justo & Bueno chain, the two actors who compete for that market are the ARA stores, of The Portuguese Jerónimo Martins, and the Colombian D1.


The latter has had a significant advance in the last year, since it has managed to position itself among companies with higher income in the country, according to the annual report of supersociedades. This is how during 2021, the D1 chain, which already completed its 2,000 store in the country, reported operational income for $ 9.95 billion, while in 2020 the company achieved $ 7.3 billion. The above highlights a significant growth of 35%.


See here for more: https://www.portafolio.co/negocios/empresas/olimpica-entrara-al-negocio-hard-discount-569584?utm_content=Contenido_Portafolio&utm_medium=Social&utm_source=Facebook&fbclid=IwAR3aL81X2lHwy3Y_GIy3I5EXzlYlGb7k8BwANS0J85sDqBPWqggu0IrDdac#Echobox=1660665107



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