Retail Profile: NOVO MUNDO Willingness to grow
In 2018, the Novo Mundo retail network had revenues close to BRL 1,250 billion and projects for 2019 growth of 6.5%
“Who would say that a furniture store of only 80 m², stablished in 1956 in Goiânia (GO), by Luziano Martins Ribeiro, would become one of the largest furniture and housewares retailers in Brazil?” This is how the President of the Novo Mundo, José Guimarães, opens this interview, highlighting that the company was born with a desire to grow. Today, it has more than 140 stores and comprises a holding company that operates in the agribusiness, construction, hotel, shopping mall, real estate and horizontal condominium segments. Recently, it invested BRL 2 million in digital transformation, believing that multichannel sales will reach 10% of its revenues, and started the project that allows the customer to pay the price of e-commerce in the store cashier and leave with the product.
How did the network expand?
José Guimarães – We grew from Goiás, dominating the Central-West from 2000 to 2009 and expanded to the states of Mato Grosso and Tocantins and the Federal District. A second major expansion occurred in 2010 to the North / Northeast, when we arrived in Maranhão, Pará, Manaus and Roraima. Currently, we operate in nine states and the Federal District and have five distribution centers, located in Goiânia, Cuiabá, São Luís, Belém and Manaus. In these capitals, we can deliver our products within 24 hours.
What is the difference of the stores?
JG – What sets us apart from the competition is the specialty in selling furniture and housewares. Each day, we evolve into experimentation in environments identical to those of a home. Our stores have an average footage of 1,200 m².
In the product portfolio, which category is the highlight?
JG – Our main focus is on the furniture category, where we specialize to the point of developing our own products in an industry considered a technology model: Montreal, which produces mattresses and upholstered sets and is part of the Martins Ribeiro Group, the industrial arm of our company. holding
Should network revenues grow by 2019?
JG – In 2018, we had revenues close to BRL 1,250 billion and projected growth of 6,5% in 2019.
What is the motivation to invest BRL 2 million in omnichannel?
JG – The need to keep innovating drives technology investments. Today, our consumer achieves a seamless integration between digital and physical. For example, he buys through e-commerce and withdraws at the physical store and, if he is a digital customer, can buy at the physical store through the online channel and withdraw the product immediately.
Does the network sell more in physical stores or e-commerce?
JG – Currently, the share of digital sales is close to 25% and, when integrated with omnichannel, reaches 36%.
How does the company prepare for Black Friday?
JG – We started the Black Friday project six months in advance, with a committee that integrates all areas to seek the largest increase in sales volume with profitability and operational efficiency.
What are the main changes that have affected retail in recent years?
JG – Retail is undergoing profound transformation not only on the digital side, the customer is more connected and demanding. Wins the war who cares to meet all costumer expectations with the least friction.
Has retail been affected by new consumer behavior?
JG – Consumption habits have changed. Cross-channel research, the change in communication with the growth of social medias, and especially considering that is no boundaries anymore, all of that have changed the retail game.
What services does the Novo Mundo offer customers?
JG – We have our own financial credit line for over 50 years, and we will launch our own credit card in the middle of December 2019.
How does the network analyze the current consumer market?
JG – We believe in the economic recovery and we are preparing for a great growth in the coming years, organizationally, technologically and placing our employees and customers as the focus of the company.
What are the biggest retail challenges today?
JG – Really understand consumers’ desires and deliver a surprising shopping experience, within a cost base appropriate to this movement.
Are there any expansion projects for 2020?
JG – The prospects are very good. Our expansion will be mainly through the online channel, where there are large marketplace contracts in progress and that are already bringing significant sales growth. Our main project for next year is a 100% physical store connected to the online channel. The Projeto Novo Mundo Casa (Novo Mundo House Project) will surprise the entire market, will be the end of the boundaries between digital and analog. Wait and see.