Grupo Ăxito Restructures, Closing Three Supermarket Brands in Colombia
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In a significant shakeup of the Colombian retail landscape, Grupo Ăxito, one of the nation’s largest conglomerates, announced the closure of three of its â˘well-known supermarket brands: Surtimax, Super Inter, and Surti Mayorista. These closures will take effect in january 2025,marking the end of an era for these familiar names in the Colombian market.
This drastic move is part of a broader restructuring strategy by Grupo Ăxito, designed to⢠adapt to evolving consumer behavior and increased competition. “Grupo Ăxito is making strong investments in remodeling âkey points âin cities such as BogotĂĄ and MedellĂn,” stated Carlos âCalleja, president of the group.”With these efforts, the company aims to strengthen its Carulla brand, which will be the â˘company’s main supermarket chain.”
The riseâ of discount chains like D1 and Tiendas Ara,known for their low prices andâ high turnover,has significantly⣠impacted the market. â This increased competition forced Grupo Ăxito⢠to re-evaluate its business model to â¤maintain its competitive edge. â The company’s strategy now focuses on consolidating its brands, with Carulla handling supermarket products and Ăxito focusing on hypermarket offerings like appliances and clothing.
âWith these efforts, the company aims to strengthen its Carulla â¤brand, which will be the company’s main supermarket chain.â
The unification of brands under the carulla and Ăxito âbanners aims to streamline operations and concentrate resources. This restructuring isn’tâ unique to Grupo Ăxito; the â¤Colombian Family Subsidy fund (Colsubsidio) also announced the closure of 76 supermarkets by the end of â2024, further highlighting the challenges facing the Colombian grocery sector.
While⣠the âclosures will undoubtedly impact⢠consumers inâ areas where Surtimax, Super Inter, and Surti Mayorista held aâ strong presence, Grupo Ăxito emphasizes its commitment â˘to quality.â “The company seeks to strengthen its presence in the market by offering fresh and quality products to more Colombian homes,” Calleja added.
This significant shift reflects a broader transformation in the Colombian supermarket industry, forcing large chains to adapt to changing consumer preferences and competitive pressures. While some customary options will disappear, Grupo Ăxito anticipates offering a more consolidated andâ competitive âselection of products, focusing on price and quality.
The restructuring represents a bold move by Grupo Ăxito to secure its position as a leading player in the increasingly competitive Colombian market. The company’s focus on its Carulla and Ăxito brands, âcoupled with investments in store renovations, signals a commitment to providing a superiorâ shopping experience for Colombian consumers.
For more facts â¤on Grupo Ăxito’s recent activities,see: Grupo⣠Ăxito confirms its departure from Wall Street and Grupo Ăxito âadvances its plan to unify all its stores under Ăxito and Carulla: this is the last store it â¤renovated.
Grupo Ăxitoâ Consolida Portfolio, Ditches Surtimax, âSuper Interâ and Surti Mayorista
Grupo Ăxito, Colombiaâs retail giant, is making waves with its decision to shutter â˘three beloved supermarket chains – Surtimax,⤠Super Inter, and Surti Mayorista. This move, which will come into effect in January â˘2025, has sent ripples through âthe nationâs retail landscape, prompting many to wonder â˘what this shift means for Colombian âŁconsumers.
We sat down with retail analyst Isabella Ramirez âto unpack the reasoning â˘behind this dramatic restructuring and explore its potential ramifications for the future⢠of Colombian supermarkets.
Adapting to a Changing Market
World Todayâ News: Isabella,Grupo Ăxitoâs⢠decision toâ close⤠three well-established supermarket brands is a bold âmove. What âare the driving âforces behind thisâ restructuring?
Isabella Ramirez: youâre â˘absolutely right,itâs a important shakeup. Grupo Ăxito⤠is responding to several converging trends. ⢠Firstly, Colombian consumers are becoming increasingly price-sensitive.â ⣠Discount chains like D1 and Tiendas Araâ have gained traction by offering aggressive prices and focusing on high-volume sales.
This has put pressure on customary supermarkets⣠to re-evaluate their business models. Secondly, Grupo Ăxito wants to streamline its operations and â˘focus its⤠resourcesâ on its⤠strongest brands â Carulla and Ăxito.
These âŁtwo brands offer a more differentiated â˘experience, with Carulla catering⤠to the supermarket segment and Ăxitoâ focusing on a broader hypermarket format, including appliances and clothing.
The Rise of Discountâ Chains
World Today News: You mentioned the rise of discount chains. How much of a factor has âthis been in Grupo Ăxitoâs â˘decision?
Isabella⢠Ramirez: Itâs been a major factor. These⣠discount chains have forced traditional supermarkets to rethink their pricing â˘strategies and target market. Grupo Ăxito has acknowledged that⤠they need to compete more aggressively onâ price while still maintaining a commitment to quality.
World⤠Today News: Does this mean that Grupo Ăxito is âabandoning its focus onâ quality?
Isabella Ramirez: ⢠Notâ necessarily. Their CEO Carlos Calleja has statedâ their commitment to offering “fresh and quality products” but âalso acknowledged the⢠need to âbe âmoreâ competitive on price.
They areâ likely âŁlooking to achieve a balance by streamliningâ operations and âleveraging âeconomies of scale to offer competitive prices without sacrificing quality.
The Impact⢠onâ Consumers⤠and the Market
World Today News: What does this restructuring mean for⣠Colombian consumers?
Isabella Ramirez: For consumersâ in⢠areasâ heavily reliant on Surtimax, Super⤠Inter, and Surti â¤Mayorista, there will likely be some initial adjustments.
They âwill need to find new sources for their⢠groceries, perhapsâ traveling further or âswitching to alternative supermarket chains. âThough,Grupo Ăxitoâs emphasis on Carullaâs âexpansion and renovation suggests âa focus on providing a wider âselection⢠of quality products at competitiveâ prices.
World Today News: Do you think this trend of consolidation and streamlining will continue inâ the colombian supermarket industry?
Isabella Ramirez: âAbsolutely. The Colombianâ retail landscape is facing tremendous pressure from changing consumer preferences, the rise⢠of e-commerce,â and increased âcompetition.
We’re likely to see more consolidation and restructuring,⣠as companies striveâ for operational efficiency and a âstronger market position.
It will be interesting to â¤see how otherâ major players respond to Grupo Ăxitoâs âŁmove and how these changes ultimately reshape the shopping experience for Colombian consumers.