Rede Caza: Whoever buys better sells more
The great idea of Rede Caza to unite companies with common goals.
by Leda Cavalcanti
If the saying “together we are stronger” is true, it applies perfectly to Rede Caza, formed by 10 companies that operate in the same segment and found in their carefully organized union a way to grow that would set them apart from the large chains, both national and international.
With this idea in mind, the group studied the competition, a task made easier by the fact that the companies are from different regions. Successes and mistakes were analyzed to gain market share and clear rules were established. Decisions are made jointly, and meetings are scheduled on dates when everyone can attend.
Today, as a compact bloc, the chain negotiates directly with the industry and has greater purchasing power and better prices compared to the competition. The simple name has now been supplemented with a z in the word “house”. “It has become our differential”, says the president Laércio Nopa da Silva Azevedo, in an exclusive interview with Eletrolar News.
“Our goal was to create a chain of stores that was different from the others, offering the best prices in the regions where they were located. It was an idea that really worked out very well.”
When was the Rede Caza founded?
Laércio Nopa da Silva Azevedo – The Rede Caza was founded on May 15, 2019, by me, who am the current president, by José Elson Pereira and José Alberto Pereira dos Santos. Its members are Alexsandro Gomes Brandão, Luciano Cavalcante Leal, José Valdizar de Carvalho, Kerlly Amorim, Bruno Falcão, Luiz Gonçalves and Carlos Anderson Costa Cruz.
How do you define the network?
LNSA – Rede Caza, which is headquartered in the city of Arcoverde, inPernambuco, is a business center that currently has purchasing power and better conditions than other companies. It is made up of 10 companies that operate in the same segments and have common goals. They offer a total of 8,500 items and have developed their own accounting system.
What were the reasons for the merger of different retailers?
LNSA – Our goal was to create a chain of stores that were different from the others and offer the best prices in the regions where they are located. It was an idea that worked out very well.
How did the network develop?
LNSA – There was a need to guarantee the best prices from the industries, so we worked on the negotiations. The most important phases occurred through partnerships and the inclusion of new members. We brought together the 10 best companies and negotiated everything, that is, the product, the quality, the volume and the price.
Does the network intend to increase the number of members?
LNSA – No, 10 is the limit. We do not want to lose the quality of what we do or our work.
Which companies make up the Caza Network?
LNSA – These are: Avelan Móveis, Bruno Eletro, Casa e Companhia, Casa Gonçalves, Casas Petronio, Eletrolar, Eletroleo, Hiago Móveis, Magazine Melo and Rede Pernambuco.
How many stores are there in total?
LNSA – The Rede Caza has 120 stores located in more than 25 cities in the states of Pernambuco, Alagoas, Sergipe, Paraíba and Bahia, employing 700 people. Our distribution center is in Paraíba.
What product categories do these stores sell?
LNSA – Our largest presence is in furniture, but the electronics segment has a high turnover. We have a variety that includes mattresses, bed, table and bath products, home appliances, cell phones, electronics and computer products. We sell the plastic and cardboard from the packaging to companies that work with recycling.
Does the operation take place in large, medium and small cities?
LNSA – We work with companies located in large cities, such as João Pessoa, in Paraíba, and Caruaru, in Pernambuco, as well as others in regions of the Northeast. In large cities, due to the population density, we can obtain better results in terms of product turnover. On the other hand, in medium and small cities, the competition is not as present.
What has been the network’s average annual growth?
LNSA – In recent years, the network’s average growth has been around 15.45%. In 2023, which was an excellent year, revenue exceeded R$268 million.
What are the expectations for 2024?
LNSA – We expect revenue to grow by 15% compared to the previous year.
What are the factors that make Rede Caza successful?
LNSA – One of them is the delivery of products, always based on the best price conditions negotiated with suppliers. Another is customer service. We deliver and assemble products free of charge, within the stipulated timeframe.
How does the business center build customer loyalty?
LNSA – Customer loyalty is always based on the best prices, fast delivery times, financing conditions and quality service. This has not changed in the current market. We have high customer loyalty in small towns and rural areas, where large chains do not reach. In large cities, loyalty is not high.
In the case of logistics, is it common for everyone?
LNSA – No. Each member has its own delivery logistics, aiming to serve the end consumer more quickly and efficiently in their region. The total fleet is 150 vehicles.
What is the credit and financing policy?
LNSA – Each member has their own credit, and some use third-party financial institutions.
In which area has Rede Caza invested the most resources?
LNSA – In recent years, we have invested heavily in digital marketing.
What are the advantages and challenges of regional retail?
LNSA – One of the advantages is logistics and quick access to consumers, enabling immediate delivery of products. Competing with large chains is undoubtedly a challenge. However, over the years and with our growth, we have been able to develop partnerships and become competitive in the market in relation to prices and other chains. As for the challenges, the biggest are the lack of tax benefits and the high tax burden, which makes negotiations with industries difficult, since each state has specific taxes.
Does the network operate in e-commerce and marketplaces?
LNSA – Most members currently have their own e-commerce. However, their greatest effectiveness is still in physical stores. Regarding the marketplace, it is in our plans. It is a good business.
What is the appeal of a physical store?
LNSA – The importance of a physical store lies in the fact that consumers can see the product in person. Online purchases still have problems. Exchanging a product is difficult, and sometimes the advertising is misleading. In the case of promotions, it is necessary to check whether the additional shipping costs make up for the discount advertised.
Will the future of retail be more physical or digital?
LNSA – We believe that, regardless of whether the market expands to digital media, such as e-commerce, the presence of physical points of sale will always be essential. They guarantee consumers immediate access to the product.
Does Rede Caza have plans to expand its operations to other states?
LNSA – Yes, we currently have plans to expand to the state of Ceará, and in the future, we also plan to create distribution points.
What are the expectations for Black Friday and Christmas?
LNSA – Growth expectations are around 15% compared to the previous year.
Does Rede Caza have plans to increase the number of stores in 2025?
LNSA – In 2025, 16 more stores are expected to open. Next year, in mid-April, we will move to our own headquarters, which we are building in Arcoverde, Pernambuco.
Source: Eletrolar News Magazine 162