Panama: The Mathematician behind Discount Retail Chains D1 and Justo y Bueno success
Updated: Aug 4, 2020
Discount Retail Owner Mr. Michell Olmi, CEO of the #Reve Group (located in Panama), has been the brain behind the best retail businesses in the world in the last decade, comparable to the giants as #Amazon, #Alibaba, #Ikea and #Wallmart. He first told about the meaning of what he calls "democratization of consumption."
"It is key that everyone, all economic strata have access to a much broader, more inclusive basket that previously the consumer could not buy."
In the sector, the discount business models that Olmi has created are admired, but some see it as a threat to department and neighborhood stores.
Currently, the market for hard discount stores in #Colombia increases by almost $ 2.5 million a year. If today Olmi and Reve owned Discount Retail Chains D1 and Justo y Bueno, they would have 60% of the Colombian retail market. Following this line it is expected to reach US $ 6.5 billion sales in 2023.
According to Olmi's vision Discount Retail Chains are successful when:
- looking for countries where there is a significant difference between the cost of a basic goods basket and the minimum wage.
- trying to learn with trial and error. Perfection is not part of the discount philosophy. Not trying to make everything perfect, but minimize risks
- focusing on meeting goals, not seeing where it is taking market share from. Discount Retail Chains do not aim at at department stores, independent supermarkets, or neighborhood stores. Its strategy is global, trying to keep growing generating more volume to have better production costs and to be closer to the consumer.
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