Brazilian Retail Research Articles

Olhos nos olhos? Os desafios de fidelização da Raia Drogasil por meios digitais

Abstract The Raia Drogasil Group (RD) is the leader in the national retail pharmacy market, with annual revenues of more than BRL30.9 billion and adjusted net income of more than BRL 991 million. There are 2,697 pharmacies distributed in all Brazilian states, more than 47.5 million active customers and more than 53,039 direct jobs generated. The group is committed to digital transformation to retain customers. Given this context, this case explores the group’s dilemmas related to a potential paradox: joining efforts to obtain greater approximation and personalization in customer service and simultaneously seeking to explore opportunities in digital relationships. The purpose of the case is to encourage students to put themselves in the shoes of the CEO of the Raia Drogasil Group, Marcilio Pousada, and his team so that they can make strategic decisions to increase customer loyalty for the current leader in Brazilian retail pharmacy market. This case was designed mainly within the scope of marketing and strategy disciplines and works with the trajectory of RD up to the present moment and with its future perspectives in view of the possibility of greater digitalization for the business. It can be worked with undergraduate, graduate, and executive education students, especially in the areas of administration and applied social sciences.

How the absorptive capacity could transform data into better decisions: a multilevel perspective to deal with the difference between firm sizes

PurposeThis study aims to investigate organizational learning, represented by the absorptive capacity, as a condition for the firm to learn about marketing data and make more informed decisions. The authors also aimed to understand how the behavior of micro, small and medium enterprises (MSME) businesses differ in this scenario through a multilevel perspective.Design/methodology/approachPlacing absorptive capacity as a mediator of the relationship between business analytics and rational marketing decisions, the authors analyzed data from 224 Brazilian retail companies using structural equation modeling estimated with partial least squares. To test the cross-level moderation effect, the authors also performed a multilevel analysis in RStudio.FindingsThe authors found a partial mediation of the absorptive capacity in the relation between business analytics and rational marketing decisions. The authors also discovered that, in the MSMEs firms’ group, even if smaller companies find it more difficult to use data, those that do may reap more benefits than larger ones. This is due to the influence of size in how firms handle information.Research limitations/implicationsThe sample size, despite having shown to be consistent and valid, is considered small for a multilevel study. This suggests that our multilevel results should be viewed as suggestive, rather than conclusive, and subjected to further validation.Practical implicationsRather than solely positioning business analytics as a tool for decision support, the authors’ analysis highlights the importance for firms to develop the absorptive capacity to enable ongoing acquisition, exploration and management of knowledge.Social implicationsMSMEs are of economic and social importance to most countries, especially developing ones. This research aimed to improve understanding of how this group of firms could transform knowledge into better decisions. The authors also highlight micro and small firms’ difficulties with the use of marketing data so that they can have more effective practices.Originality/valueThe research contributes to the understanding of organizational mechanisms to absorb and learn from the vast amount of current marketing information. Recognizing the relevance of MSMEs, a preliminary multilevel analysis was also conducted to comprehend differences within this group.

The role of internal communication in influencing retailers' views at a shopping center

Corporate internal communication represents a critical success factor in the face of great economic and political instability. For the important economic sector of Brazilian retail, shopping centers are responsible for a large part of total revenue. This success is based on the relationship between the malls and their tenants, who play a role both as a customer and an internal public. In light of the crisis caused by covid19, the relationship between malls and their tenants became a crucial point for the sector's resilience. Thus, this research aimed to analyze the perception of shopkeepers of the internal communication adopted by a large shopping center located in the city of Recife. To achieve the objective, the research used a quantitative approach with an online questionnaire with closed questions for a universe of 407 shopkeepers. Through the use of multivariate statistical analysis, it was possible to analyze the internal communication adopted by the mall in the face of the perception of 370 storeowners. Through the results, it was possible to verify that the relationship between the evaluations made by the tenants, divided between two distinct dimensions, named "organizational identification" and "360º integration", were significant in influencing the tenants in their recommendation of the mall to other entrepreneurs. The results also suggest that good organizational practices, including internal communication integrated with ethical behavior and receptive to feedback, can directly influence the organizational identification of storekeepers with the mall.

A green method for the authentication of sugarcane spirit and prediction of density and alcohol content based on near infrared spectroscopy and chemometric tools

Cachaça is a Brazilian beverage obtained from the fermentation of sugarcane juice (sugarcane spirit) and is considered one of the most consumed alcoholic beverages in the world with a strong economic impact on the northeastern Brazil, more specifically in the Brejo. This microregion produces sugarcane spirits with high quality associated to edaphoclimatic conditions. In this sense, analysis for sample authentication and quality control that uses solvent-free, environmentally friendly, rapid and non-destructive methods is advantageous for cachaça producers and production chain. Thus, in this work commercial cachaça samples using near-infrared spectroscopy (NIRS) were classified based on geographical origin using one-class classification Data-Driven in Soft Independent Modelling of Class Analogy (DD-SIMCA) and One-Class Partial Least Squares (OCPLS) and predicted quality parameters of alcohol content and density based on different chemometric algorithms. A total of 150 sugarcane spirits samples were purchased from the Brazilian retail market being 100 from Brejo and 50 from other regions of Brazil. The one-class chemometric classification model was obtained with DD-SIMCA using the Savitzky-Golay derivative with first derivative, 9-point window and 1st degree polynomial as preprocessing algorithm and sensibility was 96.70 % and specificity 100 % in the spectral range 7,290–11,726 cm−1. Satisfactory results were obtained in the model constructs for density and the chemometric model, iSPA-PLS algorithm with baseline offset as preprocessing, obtained root mean square errors of prediction (RMSEP) of 0.0011 mg/L and Relative Error of Prediction (REP) of 0.12 %. The chemometric model for alcohol content prediction used the iSPA-PLS algorithm with Savitzky-Golay derivative with first derivative, 9-point window and 1st degree polynomial as algorithm as preprocessing obtaining RMSEP and REP of 0.69 and 1.81 % (v/v), respectively. Both models used the spectral range from 7,290–11,726 cm−1. The results reflected the potential of vibrational spectroscopy coupled with chemometrics to build reliable models for identifying the geographical origin of cachaça samples for predicting quality parameters in cachaça samples.

Prevalence of environmental certificates in unhealthy foods commercialized in brazilian retail

Prevalence of environmental certificates in unhealthy foods commercialized in brazilian retail

The path to digital maturity: A cluster analysis of the retail industry in an emerging economy

This study identifies dimensions that characterize retail companies' digital maturity, clustering them into distinct levels and placing them on a path toward maturity. A quantitative methodology was used, during which strategic-level managers of Brazilian retail companies completed an electronic questionnaire. Cluster analysis was used to identify digital maturity levels. Five maturity dimensions—strategy, market, operations, culture, and technology—separate companies across maturity levels, with no dimension systematically achieving higher scores. Higher average scores for the culture dimension were found, which supports that culture is a driver of digital transformation. Larger companies were part of the cluster of digitally mature firms, and companies with lower digital maturity required greater investment in strategy and operations. This study characterizes the Brazilian retail sector in terms of digital maturity, which might be similar to other emerging economies. This study's theoretical contributions are grounded by dynamics capabilities theory, suggesting that a company must develop capabilities related to five dimensions to achieve digital maturity, and thus competitive advantages. This study proposes a framework based on the structure-conduct-paradigm, which future research should explore further.

Physiological Characteristics of Putative Enterobacteria Associated with Meat and Fish Available in Southern Brazilian Retail Markets: Antimicrobial Susceptibility, Toxic Metal Tolerance and Expression of Efflux Pumps.

Multidrug-resistant (MDR) mesophilic facultatively anaerobic Gram-negative rods are a public health issue and their spread from animal-source foods to humans is of concern worldwide. Hence, the aim of this study was to examine the antibiotic susceptibility patterns and physiological aspects of such rods, including their tolerance to toxic metals and the screening of efflux pumps expressing isolates among enterobacteria isolated from meat (chicken, beef and pork) and fish samples acquired from retail establishments in a Brazilian urban Centre of over 2,300,000 inhabitants. The study revealed that 62.9% of isolated bacteria were resistant to at least one antimicrobial, of which 32.3% and 8.1% were resistant to one and two of the tested drugs, respectively. A resistance of up to six antimicrobials was also observed (0.9%). Out of the total amount, 22.7% were classified as MDR. Chicken was the meat that harbored most MDR isolates, and fish harbored the least. It was not possible to distinguish the different types of meat or fish considering the resistance patterns. The MDR isolates showed a higher tolerance to mercury and cadmium salts and the increased activity of the efflux mechanisms compared to other susceptible or resistant strains. In One Health. the perspective occurrence of putative MDR bacteria in fresh meat and fish draws attention to the antimicrobial resistance phenomenon in an open environment.

Table S1 – Antimicrobial resistance phenotypes observed among mesophilic facultatively anaerobic Gram-negative rods presumptively characterized as enterobacteria isolated from meat and fish samples in Southern Brazilian retail markets.

Table S1 – Antimicrobial resistance phenotypes observed among mesophilic facultatively anaerobic Gram-negative rods presumptively characterized as enterobacteria isolated from meat and fish samples in Southern Brazilian retail markets.

Lumpy and intermittent retail demand forecasts with score-driven models

Irregular demand in retail is characterized by stock keeping units (SKUs) that present high intermittency, and simultaneously, high erraticness (classified as lumpy demand) or low erraticness (classified as intermittent demand), following the classification of Syntetos et al. (2005). These SKUs are basically defined by periods of zero sales interleaved with positive sales producing series with some degree of variability. Many SKUs at the store/daily level can be characterized as presenting such a type of demand. Therefore methods for adequately forecasting irregular time series are necessary for proper inventory management. This article derives models for intermittent and lumpy time series using the framework of score-driven models as developed by Creal et al. (2013) and Harvey (2013). More precisely we derive Poisson, negative binomial, hurdle Poisson, and hurdle negative binomial models and apply them to real data obtained from a large Brazilian retail chain, comparing the performance of the proposed models to adequate competing methods from the ‘slow’/intermittent demand forecasting literature. Forecasting accuracy is evaluated based on point forecasts and the entire predictive distribution. Our results show that the score-driven models perform well compared to intermittent traditional forecasting methods, providing competitive forecasting models for irregular demand in retailing.

Impulse buying behaviour in omnichannel retail: an approach through the stimulus-organism-response theory

PurposeThis study investigates impulse buying as a consumer behaviour outcome in omnichannel retail through the stimulus-organism-response (S-O-R) theory. For such, the authors addressed convenience and channel integration as the stimuli, the relationship among consumer empowerment, trust, satisfaction, and perceived value as the organism, and impulse buying as the response.Design/methodology/approachAn online survey was conducted with 229 customers of a Brazilian retailer that adopts the omnichannel strategy. Data were analysed by partial least squares structural equation modelling (PLS-SEM).FindingsChannel integration and convenience had a positive influence on consumer empowerment which, in turn, influenced customer satisfaction and trust, producing direct and indirect effects on their perception of value relative to the retailer. In addition, impulsive buying was significantly influenced by perceived value.Practical implicationsThe results indicate that retailers that use the omnichannel strategy need to be alert to the factors mentioned above. The study empirically demonstrates that investing in channel integration increases customer empowerment, which will significantly improve customer trust and satisfaction and, eventually, customer impulse buying from the retailer.Originality/valueThis work contributes to the literature on marketing and consumer behaviour by identifying factors that influence consumers' impulse buying behaviour in the context of omnichannel retail. It suggests that impulse buying may be a relevant variable to understand the reaction of consumers empowered by the integration of the marketing channels and the convenience offered to them in an omnichannel retail environment.

The wisdom of crowds in forecasting at high-frequency for multiple time horizons: A case study of the Brazilian retail sales

This case study compares the forecasting accuracy obtained for four daily Brazilian retail sales indexes at four time prediction horizons. The performance of traditional time series forecasting models, artificial neural network architectures and machine learning algorithms were compared in other to evaluate the existence of a single best performing model. Afterwards, ensemble methods were added to model comparison to verify if accuracy improvement could be obtained. Evidence found in this case study suggests that a consistent forecasting strategy exists for the Brazilian retail indexes by applying both seasonality treatment for holidays and calendar effects and by using an ensemble method which main inputs are the predictions of all models with calendar variables. This strategy was consistent across all 16 index and time horizon combinations since ensemble methods either outperformed the best single models or there were no statistical difference from them in a Diebold-Mariano's test.

Compositional Analysis of Street Market Food Waste in Brazil

Current understanding of food waste quantities in the Brazilian retail sector is limited. In order to develop efficient measures for food waste prevention and valorisation, reliable data on waste generation and composition are necessary. In this study, a compositional analysis of street market waste was conducted in São Paulo, Brazil. In total, 4.1 tonnes of waste were sorted into 27 waste fractions, categorised using a three-level approach. The average waste generation in the studied street markets was 23.7 kg per stall, of which 12.8 kg was classified as unavoidable food waste, 3.6 kg as packaging waste, and 7.4 kg as avoidable waste. The results show large amounts of unavoidable food waste, comprised of coconut, sugarcane bagasse, and peels. A large share of the avoidable food waste is comprised of single leaves, tomatoes, oranges, and bananas. Large variations were observed among the street markets analysed, both in terms of the food waste generation rate, and composition. The results from scaling up the data at the city level indicated a total wastage of 59,300 tonnes per year, of which 18,400 tonnes are classified as avoidable food waste.

COVID-19 como uma questão de gênero no mercado: uma chamada para ação contra a vulnerabilidade?

Abstract Gender-based domestic violence has increased considerably in Brazil during the COVID-19 pandemic. This alarming situation has affected the market and has inspired individuals and organizations to create initiatives to tackle the issue. This article seeks to understand how the links between market practices prompt discussions on social issues such as women’s vulnerability in the face of domestic violence. The methodological path was built around an initiative by Magazine Luiza (a major Brazilian retailer): the panic button in the Magalu app. A corpus was formed, gathering news about the initiative and analyzed afterward. Although Magalu’s market practices can be seen as influential in the fight against gender violence, there is imminent danger of relegating the defense of women to the market sphere, whereas in contrast, the creation of resilience is, without a doubt, the result of joint action by society as a whole.

From community pharmacies to big pharmacy chains: private provision of medicines, health system, and financialization of the Brazilian retail pharmacy market

The provision of medicines in Brazil is marked by the predominance of private expenditures and supply in pharmacies and by the historically liberal regulation of retail drug sales. The first two decades of the 21st century witnessed the expansion and concentration of the retail pharmaceutical sector and growing financialization of the health sector. The article analyzes the characteristics of financialization of Brazilian retail pharmaceutical companies, considering the following three crosscutting dimensions: ownership structure, financial/accounting, and political. Quantitative and qualitative data from various sources were analyzed including ownsership and account informations of the ten biggest Brazilian retail pharmacies chains and political action of four business associations. The information collected was stored in the source project database. The ownership structure dimension revealed verticalization, diversification, capitalization via financial and shareholding operations, intensification of mergers and acquisitions, opening of pharmacy branches, entry of investors, and changes in internal management and organization. The financial/accounting dimension revealed an increase in size (revenues, assets, net worth) and good performance (return on equity capital, capital turnover, and third-party capital) of the networks compared to Brazilian companies and health companies. The policy arena revealed both clashes and collaborations between representative associations and government (Executive, Legislative, and Judiciary), depending on the issue, with outcomes that were generally favorable to the pharmaceutical sector and leadership by the Brazilian Association of Pharmacy and Drugstore Networks (Abrafarma). The financialization of the retail pharmaceutical companies' accumulation pattern and the strengthening of their political action proved relevant for understanding the changes in the provision of medicines and in the pharmaceutical market.

Supply chain collaboration and organisational performance: the effects of big data analytics capabilities, technological dynamism, and competitive intensity

Although previous studies observed the effects of big data analytics (BDA) on firm performance, some gaps persist. One of the alternatives to improve performance in BDA contexts is to establish collaboration agreements. However, previous research has ignored the effects inter-organisational collaboration could have on supply chain relationships. Grounded on the relational view theory, this study aimed to assess the effects collaboration has on organisational performance, especially when mediated by BDA capabilities. A quantitative study was carried out with Brazilian retail companies and data were analysed using partial least squares - structural equation modelling. The retail sector is characterised as highly dynamic and competitive, so the moderating effect of the technological dynamism and competitive intensity on the relationship between collaboration and organisational performance has also been assessed. We have found out that collaboration has a direct effect on organisational performance, mediated by BDA capabilities and moderated by technological dynamism and competitive intensity.

COVID-19 and the financial structure of brazilian retail companies

O objetivo deste estudo foi analisar o impacto da pandemia da Covid-19 na estrutura financeira de empresas de varejo listadas na Brasil Bolsa Balcão (B3). A pesquisa se deu a partir da análise de relatórios financeiros e do cálculo de indicadores de empresas do setor listadas na B3, no período de 2017 a 2021, que contou com dados coletados da Economática®. Como principais resultados, percebeu-se que nem todas as empresas sofreram os mesmos efeitos. Os indicadores apontaram que o impacto da Covid-19 foi maior na estrutura financeira das empresas do ramo de roupas e vestuários; com algumas delas apontando “leve” recuperação no ano de 2021. Concluiu-se que a pandemia afetou diretamente grande parte das empresas do ramo do varejo listadas na B3, com o aumento de passivo oneroso, redução de caixa, diminuição na receita líquida de vendas e, consequentemente, diminuição dos lucros; algumas delas, apresentando prejuízo como resultado.

Logistics as a competitive advantage in retail organizations

Retail plays an important role in the trade sector of the Brazilian economy, with net operating revenues of nearly BRL 1.7 trillion and more than 7 million workers in 2018, according to the latest Annual Trade Survey from the Brazilian Institute of Geography and Statistics. The entry of large multinational companies into the Brazilian retail market, where it is worth highlighting Amazon, has negatively impacted the market of Brazilian retail companies, which still use archaic methods and disqualified labor in their operations and processes. Amazon provides better logistics services that directly add value to the quality of products offered through a leaner and more profitable supply chain. Additionally, the behavioral changes brought about by Covid-19 have made consumers more satisfied with online shopping experiences than with visits to physical stores. The increase in internet shopping and the reduction of visits to sales outlets has caused a migration of consumption to digital media, which may generate long-term transformations in the strategies of companies. Thus, the objective of this research is to provide a conceptual proposal of the use of logistics as a competitive advantage in retail organizations, considering the best management practices for the logistics sector. As a research methodology, a systematic literature review was adopted, based on the PRISMA protocol, allowing the identification of 94 records, 12 of which were included in the literature review, due to their adherence to the researched theme. The main contribution of this paper is the development of a conceptual proposal for the use of logistics as a competitive advantage in retail organizations, comprising five aspects: Information Systems, Application of KPIs aligned with the Strategic Objectives of the Organization, Creating Value for Products, Modern Management Concept and, Need for Organizations to recognize the Benefits and Advantages of Logistics.

Won’t Get Fooled Again: A supervised machine learning approach for screening gasoline cartels

We combine supervised machine learning techniques with statistical moments of the gasoline price distribution to detect cartels in the Brazilian retail market. Standard deviation, coefficient of variation, spread, skewness, and kurtosis are predictors that can help identify and predict anti-competitive market behavior. We evaluate each classifier and discuss the trade-offs related to false-positive (detect cartel when it does not exist) and false-negative (do not detect cartel when it does exist) predictions. The competition authority needs effective monitoring and often anticipating cartel movements. With this in mind, we test the algorithms’ performance in new datasets (ex-ante screening). Our results show that false-negative outcomes can critically increase when the main objective is to minimize false-positive predictions. The models’ overall average scoring rate for testing and predicting cartels in the same city is 96.22%. When we train the algorithms in one city and predict the cartel outcomes in other cities, on average, the overall scoring rate is equal to 73.75%. Our work suggests that machine learning classifiers have positive attributes and can provide valuable contributions to cartels’ deterrence. In addition, we offer a policy prescription discussion for antitrust authorities regarding the pros and cons of proactive tools for inhibiting collusive agreements in retail gasoline markets.

A omni-channel transformation in a Brazilian Retailer: the role of Supply Chain

As a more comprehensive evolution of the concept of customer service channels, the omni-channel was driven by the new information communication technologies that have brought the consumer a new dynamic in the relationship with retailers. This new dynamic imposes on the retailer a series of changes in its internal management processes. The consumer shopping journey can start in the cell phone, go through a physical store for experimentation or withdrawal of the product or service, and end up in a social network from an opinion, good or bad, about the service or product. The technology alone is not enough to ensure that during that journey the consumer has satisfactory experience that can boost new sales. It is up to the retailer to prepare its numerous business processes and also its organization, composed of people with their due roles and responsibilities, for this new dynamic. For its part, this consumer when perceiving this value offer is willing to reward the retailer through engagement with his brand and new purchases. In this context, among the most important processes to be adapted to the omni-channel are those involved with the supply chain. A perfect synchrony of this chain is what guarantees products, services or both at a fair price, in the right place and at the right time. This study seeks to investigate, through a single case study, how the introduction of the omni-channel is being managed by a national retailer that markets durable goods of several segments.

Investigating the financial impact of collection-and-delivery points in last-mile E-commerce distribution

The rapid growth in e-commerce volumes, coupled with customer expectations of faster, flexible and cheaper parcel deliveries is increasing the pressure on retailers to design the most efficient delivery network. Collection-and-delivery points (CDPs aggregate demand for both forward and return flows and help minimize additional tours in the case of failed deliveries. In this paper, we formulate an optimization model that integrates CDPs in the design of the overall distribution network, including the location of upstream transshipment facilities. The model accounts for changes in demand density due to the placement of CDPs. It considers demand aggregation at the CDP for both forward and return flows, and the impact of failed deliveries and failed return pickups on the routing cost. The model considers different route options and solves them using extended routing cost approximation formulae thus allowing the implementation of the model on large-scale problems. We then apply the model to solve a real-world case study on the distribution network of a major Brazilian retailer. The results demonstrate that failed deliveries and failed return pickups increase both the last-mile cost and the overall cost of distribution, and CDPs effectively reduce these costs by aggregating the demand and minimizing travel time.