In recent blog posts, I’ve talked about the diverse economies of Latin America – and the diverse paths that lead retailers to implement price optimization – as well as the broad and accelerating movement toward customer-centric retailing there. Today I want to dive a little deeper into the story of how one Latin American innovator, Minas Gerais’ Drogaria Araujo, is leading the market with price optimization, promotion optimization and advanced analytics to better serve its customers and enhance business results.
It’s no secret that the Brazilian economy is challenging these days. With high rates of inflation and a shrinking GDP, the economy is in a recession that is in stark contrast to the heady days of sustained, robust growth from 2003 – 2014. It’s a time when many companies are taking a conservative stance, focusing on survival under difficult circumstances.
But Drogaria Araujo, which traces its roots back 110 years, has long been respected as a bold and innovative market leader. Its list of “firsts” is impressive indeed: the first Brazilian drugstore, and the first pharmacy chain in Brazil to offer drive-through, home delivery and 24-hour service.
For this visionary company, the recession offered the opportunity to make a bold investment in customer-centric pricing and promotions, using Revionics’ capabilities to provide meaningful value to customers at a time when shoppers are closely watching their budgets. For Araujo, this is a critical opportunity to replace legacy price optimization and focus on being more responsive to fast-changing customer, market and competitive trends, all while enhancing its brand image and driving top-line sales.
Araujo is innovating in other parts of its business as well, making investments today that, like Revionics, deliver powerful ROI in the future. They recently converted their store lighting to green LED bulbs, which will save them an anticipated 30% in energy costs. They are building a new distribution center in Contagem. And they are implementing more robust ecommerce capabilities.
For Araujo, the opportunity for innovation and leadership in challenging times as well as good times has enabled them to buck the trend and show growth during a period of Brazilian economic contraction – In 2015 alone, they opened 15 new stores. We share Araujo’s culture of vision and innovation and are very proud to welcome them to the Revionics family of customers.