Ísimo stores surprise with announcement in Colombia and customers would benefit

By: EVALUATE ANALITIK

Provision of economic, political, financial and stock market information

This article was curated by Leonardo Olaya

Jun 8, 2024 – 6:22 pm

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Since opened its first location at the end of 2022, Ísimo has positioned itself as a clear competitor in the strong hard discount market in Colombia, along with other players such as D1 and Tiendas Ara.

In the course of less than two years, Ísimo has opened more than 300 stores located in 12 departments of the country. In addition, by 2023, the warehouse chain closed with sales of $520,000 million.

(See also: Éxito made a change in one of its stores and customers will have respite in the supermarket)

To learn about the growth plans of the warehouses that are part of Grupo Olímpica, Rate Analitik exclusively interviewed Andrés Escobar Uribe, general manager of Ísimo since April 2023. The conversation was during the Asoleche Congress, held on June 5 and 6, 2024 in Medellín.

This is how Ísimo plans to grow stores in Colombia during 2024

At the end of 2022, It was known that Isimo would come to occupy the place in the market left by Justo & Bueno, chain founded by Michel Olmi and that, after the pandemic, had to be liquidated.

Regarding that beginning, Escobar explained that, in December of that year, “we found a market reality with greater competition. But we have not only had a better value proposition in market terms, but also a quality-price ratio “That allows us and will allow us to position ourselves much better.”

During the first half of 2023, and resuming that position that Justo & Bueno had left, it had growth that allowed it to reach around 400 stores. However, for the second quarter of 2023 and the first quarter of 2024, and after evaluating market conditions, the closing process of some stores, in order to improve the geographical and market position. Also, taking into account the economic reality of Colombia.

To the dateÍsimo has 306 stores in: Cundinamarca (66), Antioquia (52), Atlántico (42), Tolima (38), Huila (28), Norte de Santander (26), Santander (24), Bolívar (14), Magdalena (11), Caquetá (2), Caldas (2) and Cesar (1). In addition, they have seven distribution centers and an operation with nearly 2,000 employees.

(See also: What are the cheapest products today in Corabastos? Guide to family savings)

With this in mind, Escobar told this medium, Very long wait close 2024 reaching, once again, about 400 warehouses open. Furthermore, it projects sales close to $1 billion. During this year, the company will invest about $160,000 million, destined for expansion, as well as strengthening operational processes.

How the Ísimo model works

Andrés Escobar, general manager of Ísimo, explained that, in order to guarantee low prices, “resignations” must be made.

“Low prices for us They are a consequence of the operation and not a requirement of the supplier. Low prices can be achieved by being efficient in the sales process. We give up many things to be able to simplify ourselves and simplicity gives efficiency,” he stated.

These resignations have to do with, for example, having between 800 and 1,000 product references with which you can find everything you need for a basic basket, “and even more.”

“We have a variety of offerings in what we call portfolio breadthto solve all needs, but not in depth. We have one or two water references, not 10, the same thing happens with milk and most products.”