Profile: Cencosud SA (CNCOYN.MX)
Cencosud S.A., incorporated on December 28, 1978, is a multi-brand retailer in South America. The Company operates through six segments: supermarkets, home improvement stores, department stores, shopping centers, financial services and Other. It is also engaged in the commercial real estate development business in Chile, Argentina, Colombia and Peru, with over 50 shopping malls representing approximately 794,590 square meters of gross leasable area (GLA). The Company offers private label credit cards, consumer loans and limited financial services to its retail customers. Additionally, the Company operates other lines of business that complement the main retail operations, such as insurance brokerage, travel agency, customer loyalty services and family entertainment centers. The Company has approximately 1,180 stores and shopping centers with an aggregate of approximately 4,416,700 square meters of selling space.
The Company operates over 940 supermarkets throughout Chile, Argentina, Brazil, Peru and Colombia. The Company sells a range of name brand and private label products. The Company operates a total of over 240 supermarkets in Chile under the Santa Isabel and Jumbo brands. The Company also operates approximately 290 supermarkets under Jumbo, Disco and Super Vea brands in Argentina. Its operations in Brazil consist of over 220 supermarkets. The Company operates approximately 90 Wong and Metro hypermarkets and supermarkets in Peru, which together has approximately 269,530 square meters of total retail selling space. The Company's Jumbo hypermarkets are primarily oriented towards middle and upper-middle income consumers.
The Company operates its supermarkets in Chile mainly under its Santa Isabel brand, which is primarily aimed at the low- to middle-income segment of the Chilean population. Its Santa Isabel stores sell a range of food products and general merchandise items. In addition, certain Santa Isabel stores feature specialty departments, such as prepared foods, fresh seafood and bakery departments. Santa Isabel also offers products, such as alcohol, cosmetics, household and other non-food items. The Company operates approximately 290 supermarkets in Argentina, which together have approximately 526,470 square meters of total selling space. Its Jumbo hypermarkets in Argentina offer a range of food and non-food items, including fresh fruits and vegetables, baked goods, fresh meats and other grocery items.
The Company's Disco stores have a service-oriented format and offer a variety of products and services to its customers. The Company also operates price-oriented stores under the Vea brand. Vea stores are primarily concentrated in the Cuyo (San Juan and Mendoza) and Northwest (Tucuman, Salta, Catamarca and Santiago del Estero) regions of Argentina and offer a lower level of services with a proportion of secondary brands and private labels. Disco offers a range of food and non-food items, including fresh fruits and vegetables, baked goods, fresh meats, cleaning, health and beauty products and other grocery and supermarket items. In addition to general food and non-food items, Vea also sells a variety of home appliances, including televisions and refrigerators, as well as other household consumer products. The Company operates approximately 220 stores in Brazil that together have approximately 611,360 square meters of total selling space. In addition to these, the Company also operates approximately 140 locations in formats, such as Eletro-show stores, pharmacies, gas station and delicatessen under its GBarbosa, Bretas and Perini brands in Brazil.
GBarbosa supermarkets have selling areas ranging from 400 to 8,000 square meters. GBarbosa supermarkets sell products, such as fresh fruit and vegetables, meat, poultry, dairy products, alcoholic beverages, textiles, cosmetics and cleaning products, in addition to more gourmet items, such as delicatessen products, fresh fish and bakery items. GBarbosa supermarkets also offer a range of non-food products, such as electronics, home appliances and textiles. Mercantil Rodrigues offer a range of food items, including fresh fruits and vegetables, baked goods, fresh meats and other grocery items. The Company also operates approximately four Perini stores and 60 Bretas stores. The hypermarkets it operates in Colombia have an average selling space of approximately 4,220 square meters.
Home improvement stores
The Company operates approximately 90 Easy home improvement stores in Argentina, Chile and Colombia for home improvement, hobbies and construction. In Chile, the Company operates its home improvement store business through approximately 30 Easy home improvement stores. Easy home improvement stores are oriented towards three groups of consumers: professional construction contractors and home improvement professionals, people interested in do-it-yourself projects and hobby enthusiasts. Its Easy home improvement stores offer a range of home improvement items, including flooring, paints, bath and kitchen materials; home, furniture, garden and hobby materials; hardware, electrical and plumbing materials; building and wholesale construction materials, and agricultural products. Its Easy home improvement stores in Chile have an average of over 9,290 square meters of selling area.
In Argentina, the Company operates its home improvement store business through over 50 Easy and Blaisten home improvement stores, which have approximately 383,790 square meters of total selling space. Its Easy home improvement stores in Argentina offer a range of products, including flooring, paints, bath and kitchen materials; home, furniture, garden and hobby materials; hardware, electrical and plumbing materials, and building and wholesale construction materials. Its Easy home improvement stores in Colombia have an average selling area of approximately 8,230 square meters. Its Easy home improvement stores in Colombia offer a range of products, including flooring, paints, bath and kitchen materials; home, furniture, garden and hobby materials; hardware, electrical and plumbing materials; building and wholesale construction materials, and agricultural products.
The principal activity of the Company's Paris is the retail sale of clothing products, including clothes for women, men and children, shoes and accessories, as well as household goods, electronics and technology products. The Company operates approximately 80 department stores in Chile, which together have approximately 374,150 square meters of total selling space. In Peru, its Paris store operations consists of approximately nine stores with approximately 45,230 square meters of selling space. The Company's Paris and Johnson department stores in Chile have an average selling area of over 4,730 square meters. Its Paris department stores carry a range of products, including clothing, accessories and cosmetics; home decor, electronic and household appliances; sporting goods, and footwear. Its Paris department stores carry private label products under the brands Opposite, Alaniz, Tribu, Attimo, Rainforest, Greenfield, Suburbia, Muv, Fes, Yoko and Aussie, among others.
The Company is a regional operator of shopping centers in Latin America with operations in Chile, Argentina, Peru and Colombia. The Company has a total leasable area of approximately 794,590 square meters. The Company is an owner and operator of over 20 shopping centers in Chile, 20 in Argentina, four in Peru and over two in Colombia. Within the shopping center business, the Company operates the formats, including one Mega Center shopping Centers, which have over 100,000 square meters of GLA, containing mixed-use space, anchor stores, satellite shops, medical centers, offices and hotels; approximately three Regional Shopping Centers over 100,000 square meters of GLA with impact on multiple geographic areas, anchors, satellites and medical centers; over 20 Neighborhood Shopping Malls with over 70,000 square meters of GLA with areas of influence in the surrounding communities, with anchors, satellites and in some cases medical centers; over three Factory Shopping Centers for discount brands; over 10 Power Centers of over 35,000 square meters of GLA, including a maximum of two Anchor stores and a small number of local satellite stores, and over three Strip Centers with over 10,000 square meters of GLA with one anchor store with a maximum of approximately 5,000 square meters, plus an additional satellite store.
In Chile and Argentina, the Company's shopping center formats host a Jumbo hypermarket, an Easy home improvement store, and in Chile and Peru, they host a Paris department store and other third party business. In Chile, the Company operates over 20 shopping centers, with over one million square meters in total GLA, under the formats, including Mega Center, Regional, Neighborhood, Strip Centers and Power Centers. The shopping centers are located throughout Chile, having approximately nine shopping centers located in Santiago and in over 10 other regions. In Argentina, it owns and operates over five formats: Regional, Neighborhood, Factory, Power Centers and Strip Centers. Unicenter, based in Buenos Aires, is the main regional shopping center in Argentina. It also operates over 10 neighborhood shopping centers under the brand Portal, over three Factory, six Power Centers and a Strip Center.
In Peru, the Company owns and operates over four malls, with a GLA of over 123,140 square meters, a regional shopping center called Plaza Lima Sur located in Lima, a Neighborhood mall in the city of Arequipa, called Arequipa Center and two Strip Centers in Lima. In Colombia, it has a stake in over two shopping centers, El Limonar Shopping Center in the city of Cali with approximately 160 stores and Shopping Center Santa Ana with approximately 50 stores in the city of Bogota, altogether totaling approximately 34,600 square meters of GLA.
The Company has over six million active credit card accounts. The Company's financial services operations also include joint ventures in Brazil and Colombia and an insurance brokerage in Chile. The Company's insurance activities focus on the sale of life, medical, unemployment, home and car insurance. The Company's insurance products are sold through its distribution channels and are supported by telemarketing and personalized marketing to customers in Paris and Jumbo stores. In Argentina, it operates a credit card business for each of its retail brands. In Brazil, it operates its financial services through a joint venture with Brazil's Banco Bradesco, under which they operate its Credi-Hiper card. In Colombia, it operates its financial services through a joint venture with Colombia's Banco Colpatria (Colpatria). The credit cards are operated through its supermarkets in Peru.
In Chile and Argentina, the Company operates over 12 family entertainment centers under the Aventura brand. The Company's Aventura entertainment centers offer arcade games, mechanical games, bowling lines, three dimensional (3D) games and an indoor roller coaster in its Aventura center at Florida Center in Santiago. The Company offers its Puntos Cencosud loyalty programs in Chile. It has over three million active members in Chile. In Argentina, it also offers its Jumbo Mas and Vea Ahorro loyalty programs. It has over two million loyalty club members in Argentina. In Peru, the Company is the member of the Bonus loyalty program. Bonus is a multi-participant loyalty program that develops and manages loyalty and incentives programs through a system that rewards customers by giving them points for their purchases in any of its stores that later can be exchanged for other products.
The Company owns Banco Paris, a specialty retail consumer bank in Chile. Banco Paris offers its individual customers a range of products and services, including consumer loans and mortgage loans. Banco Paris offers a range of traditional deposit instruments, including savings and time deposits. Banco Paris also offers its customers life and homeowner's insurance. Banco Paris has over 44,190 individual customers, with loans outstanding to approximately 690 debtors, including approximately 590 mortgage loans and approximately 100 credit card accounts. Banco Paris has approximately 40 time deposits and approximately 43.501 saving accounts.
The Company competes with Casino, Carrefour, Wal-Mart, Falabella, Exito, Olimpica, Sodimac, Ripley, La Polar, Vivo, Pasmar, SMU S.A., InRetail, Mega Plaza, Coto, Supermercados Peruanos, Irmao Muffato & Cia, Supermercados BH, SDBComercio, Condor Super center Ltda., Sonda Supermercados, Bompreco, Tesco, Sainsbury, Companhia Brasileira de Distribuicao, Guanabara, Mundial, Hiper Tehuelche, Barugel Azulay, Grupo Corona, Espacio Urbano, Parque Arauco, IRSA Inversiones Representaciones S.A., Interbank Group, Aventura Plaza, Open Plaza and Jockey Plaza.