Brazilian Retail News

Year 09 Issue # 361 São Paulo, October, 25th, 2010 Phone: (5511) 3405-6666

Fnac opens the largest Apple

Shop in Latin America

French electronics chain Fnac has

opened at MorumbiShopping, in São Paulo,
a 200 sq.m. Apple Shop, the largest space
dedicated to Apple goods in Latin America.
Apple Shops are environments totally
focused on the Apple concept, creating a
different shopping experience by offering the
brand’s entire product range, as well as
thrir-party accessories. The place has
Apple-trained consultants and Fnac
salespeople able to explain the Mac
technology to consumers and demonstrate
Apple’s solutions.

Retail sales to have two-digit growth this year

The National Commerce Confederation (CMC) forecasts a 10.4% rise in retail sales this year in Brazil, almost
doubling the 5.9% presented in 2009. CNC’s Family Spending Intention survey showed in October an 1.7% rise
month-on-month, to 137.5, the highest-level this year. This rise is due to lower debts, rising confidence and higher
employment levels.

Chilean Cencosud doubles presence in Brazil

Chilean retailer Cencosud announced the purchase of Minas Gerais state-based Bretas supermarket chain for
R$ 1.35 billion (US$ 813 million). The chain will finance the transaction with US$ 290 million in loans and the
remaining with its own resources. With the deal, Cencosud doubles its presence in Brazil, where it already had
GBarbosa, Família and Perini chains. Bretas, Brazil’s 7th largest supermarketer, with 62 shops, will rapidly
expand, as Cencosud intends to open up to 30 stores in the next three years.

BRAZILIAN RETAIL NEWS 1 10/25/2010

Brazilian Retail News
Year 09 Issue # 361 São Paulo, October, 25th, 2010 Phone: (5511) 3405-6666

C&A opens flagship store in São Paulo

Dutch C&A, one of Brazil’s top department store chains, opened last week a flagship shop at Iguatemi shopping
mall, in São Paulo, presenting a new concept. The shop combines elegance, boldness, brightness, energy,
sexiness and technology. One of the innovations is a LED-lighted display. The store has exclusive spaces to sell
products signed by designers, specially a permanent São Paulo Fashion Week (SPFW) store-in-store.

Collective shopping websites grow 25% in September

According to Nielsen-Ibope data, collective shopping websites

attracted 4.5 million people in Brazil in September, 25% more in
August. According to Nielsen-Ibope, the Brazilian market is led
by Peixe Urbano, with 60% of total accesses. More people used
Peixe Urbano in September than traditional e-commerce sites,
as Casas Bahia and Ricardo Eletro.

BRAZILIAN RETAIL NEWS 2 10/25/2010

Brazilian Retail News
Year 09 Issue # 361 São Paulo, October, 25th, 2010 Phone: (5511) 3405-6666

Momentum
Sustainability – the condensed view
Marcos Gouvêa de Souza - CEO, GS&MD - Gouvêa de Souza

Above all, it is bold. But it’s worth trying to summarize all that was debated and discussed during two days,
during the 13th Latin America Retail Forum, last week in São Paulo, having as a focal point the Sustainability and how
the market will be reshaped by the Metaconsumers. There were more than 30 presentations having as the center the
global study developed by GS&MD – Gouvêa de Souza, supported by the Ebeltoft Group members, in 17 countries
with 9,000 people. The study will be done again every other year, to help mapping the consumers’ behavior and to
analyze the impacts the changes in this behavior may bring to the business scenario, specially in retail.
Among the broadest strategic conclusions, one must highlight some issues:
* a significant share of consumers worldwide, we’ve been calling Metaconsumers, already takes into account
Sustainability and Conscious Spending when deciding for products, brands, stores and websites. In Brazil, there
are at least 17 million Metaconsumers;
* consumers, sensitive to all that has been said and written about these issues, are eager for more information
on products, services and brands that are really sustainable, being frustrated by the little that has been offered;
* in spite of many initiatives being adopted by suppliers, service providers and retailers, there is a feeling
that little has been done, as the communication has been targeting the community involved in these issues and
has not been able to contact directly consumers;
* the knowledge level and consumers’ learning curve on these issues is in their learning stages, but the
growth of Sustainability and Conscious Spending is irreversible, thus expanding the impact on the purchase
decision on goods, services and brands, due to a feedback effect in this process. The more the issues are
publicized, more they’ll be noticed and brought to the decision-making elements;
* Metaconsumers, the ones considering Sustainability and Conscious Spending in their purchase decisions,
account for, in average, a quarter of the total market, but tend to increase heavily in the next years, as the media give even
more space to these issues and there is a growth in the learnings and information on the real importance of the matter;
* the companies, in all segments, shall bring Sustainability and Conscious Spending to the center of the
strategic discussions, taking them out of the niche segments, where they’ve been treated in an ideologic way, to
make the initiatives more visible, leave all myths outside and innoculate these concerns on the soul and DNA of
every single company;
* on Sustainability and Conscious Spending there can’t be only speeches. The market, the communities and
the consumers press for practical, tangible actions and the pressure will only go up. And, before purchasing green
products, the Metaconsumer will avoid buying brands, goods and services that don’t allign to all this concern;
* Sustainability and Conscious Spending are sustainable concepts pay themselves in a tangible way,
returning the investments by reducing expenses. The intangible return, the positive evaluation of the brands, is an
added benefit that should be considered;
* the stock market values more those companies and brands who have had a remarkable consistency and
coherence on their Sustainability and Consicous Spending initiatives;
* Metaemployees, who are the Metaconsumers on their jobs, are a strong element activating relationships
and initiatives, but can be negatively impacted if the companies ignore them. This is why corporations must involve
Metaemployees in the initiatives they’ve been promoting, counting on their sympathy.

Gouvêa de Souza & MD Desenvolvimento Empresarial Ltda.

Av. Paulista, 171 - 10º floor
Paraíso – São Paulo – Brazil – Zip Code: 01311-904
Phone: (5511) 3405-6666 – Fax: (5511) 3263-0066
E-mail: gsmd-de@gsmd.com.br
Home-page: www.gsmd.com.br

BRAZILIAN RETAIL NEWS 3 10/25/2010