Box Layout

HTML Layout
Backgroud Images
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
Backgroud Pattern
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest
  • greenforest

Cencosud: What caused the closure of the operations of Tiendas Paris?

Tiendas Paris closed its 11 stores nationwide and it is logical to wonder what happened to the operation of the department store. It was in 2013 that Paris entered the national market by opening its first store in the city of Arequipa, to later announce its other locations in Cajamarca, Ica and Lima. The company's argument for leaving the market is that it did not obtain the results or the participation it expected, as evidenced by the Euromonitor figures that were shared with the newspaper El Comercio.

The consultant mentions that, at the end of 2019, the retailer's share amounted to only 8.3%, while Falabella had 46.5%, Ripley 27.6% and Oeschle 11%. After Cencosud announced the closure of the department store, in Chile the shares rose by 3.48% at the opening of the Santiago stock market, while the Itaú investment bank said that the closure was successful because, of Cencosud's income the previous year only 1% was represented by Paris in Peru.

“Horst Paulmann (founder and president of Cencosud) is one of radical measures and quick decisions, the group's operations have suffered a strong impact from the pandemic that was added to other externalities such as the social crisis in Chile, the fires and looting that affected the normal course of business”, comments Ernesto Aramburú, director of the consulting firm A&M Management and Development for the newspaper Perú 21.

Related Posts

Sodimac and Maestro among the 3 best companies to work for in Peru

29 January, 2022

iShop stores in Peru will start using the Apple Pay payment system

29 January, 2022

Was it a strategic error?

Cencosud: ¿Que causó el cierre de las operaciones de Tiendas Paris?

Some experts mention that the retailer's lack of differentiation and the weakness of its sales strategy was what caused the operation on Peruvian soil to no longer be justified.

Percy Vigil, a specialist in 'retail' issues, in a conversation with Peru 21, stated that the choice of places was not adequate from the start. "Paris should have opened stores first in Lima, where the bulk of consumption is concentrated, and not start with the provinces," he explained.

The lack of differentiation is also highlighted, since Paris offered the same value proposition that Falabella and Ripley already offered to a consolidated public. To this is added that the advertising was not aggressive enough to win over consumers and that the brand did not yet have an e-commerce.

Ernesto Aramburú explained that when the firm entered the market it did not have the necessary strength to compete with Falabella and Ripley, which were already well positioned with a significant number of stores, around 30 each. “These brands had their own growth generator with the Mall Aventura Plaza shopping center, an alliance that they later dissolved. While Paris and Oechsle were left behind, although the latter has its growth through Real Plaza”, he pointed out.

Finally, one aspect that did not help the brand is that the Cencosud card did not have the expected relevance to generate more purchases. Undoubtedly, the exit of the retailer will be hard since they will have to liquidate staff and relocate them, in addition to bearing the costs of closing all their stores.

Tags: cencosudretailersRetailretailerdepartment-storestores Paris

  • Tags:
  • a&m clothing brand

Related Articles

'The ambassador's daughter': everything about the premiere of the Nova series

A girl named Melek arrives in her living room and finds a dead man. Her mother, in the bathroom, cleans the blood from her clothes and her face, in addition, she keeps a knife along with the rest of the things in ...

Criticism rains down on Balenciaga for a diver with holes that sells for more than 1,000 euros

Exclusive ContentThe article you are trying to access is exclusively for subscribersSubscribe Find out about our plans and enjoy El País without limits.Enter If you are already a subscriber you can enter with...

 Mexico wins 6 medals in the Mathematics Olympiad When and where to watch the Mexico vs.  Gold Cup Honduras Celta will create three new schools in Mexico

This Friday we have information about the Mexican champions in Mathematics, Roberto Palazuelos' clothing brand, Celta's new soccer schools and more.Mexico wins 6 medals at the Olim...

 Bicycle Derailleur Adjustment |  Causes and solutions for a maladjusted change

Adjusting the bicycle derailleur can be something very simple if we know what we are doing, or it can become a real headache for not knowing how to find the key or, why not, because...