De Narváez says goodbye to Walmart-owned brands

At the end of 2020, Francisco de Narváez managed to return to his first love, supermarkets. After a tough fight against other candidates, the businessman and former owner of Casa Tía closed deal to buy Walmart, later renamed Changomas. The chain has 92 branches across the country and around 9,000 employees.

Now De Narváez is laying off the latest assets of the North American chain. As planned and agreed with the parent company, has started the process of replacing its brands (Great Value, Equate, Acuenta and Parent`s Choice), which will be gradually replaced until April next year by Check, Soul Care, Aliada and Soul Baby respectively.

“In total, more than 650 products (in all categories) will be presented in two phases. In a first phase (which ends at the end of the year) we would have about 50% of the affected products already on the shelf; while the rest would be ready for the first quarter of 2023 “, the company explained. Own brands account for 17% of the chain’s total sales.

Matias Grondona, general manager of GDN Argentina, said that “the launch of our new own brands is one of the last steps in the company’s transformation process, which began with the acquisition of Walmart’s businesses in November 2020”. Changomas is the 4th chain in the country in billing. In front of the French Carrefour, the Chileans Cencosud (Jumbo, Disco and Vea) and Coto.

Each brand distinguishes a category. Check, which replaces Great Value, will be used on food, beverages, cleaning and paper; perfumery, beauty and cosmetics will be branded Soul Care instead of Equate). Baby items (except food and clothing) identified with Parent’s Choice today will carry the Soul Care brand. Eventually, Acuenta will cease to exist and will be replaced by Aliada, which will be used in high-turnover products at a low priceor: cheeses, dry pasta, sausages, meat medallions, flour and kitchen paper.

Supermarket brands emerged in 2001 as an emergency of the crisis. In general, today they compete with leaders, with prices between 25 and 30% less. Its adoption and development is a central part of the chain business and its positioning varies according to its market position. In the case of the Spanish company Día, represents 80% of its total supply.

Carrefour has just launched a new edition of Brave pricesa promotion based on about 1,500 products bearing the brands developed by the chain of French origin.

Coto owns more than 15 of its own stamps, including Coto, Ciudad del lago, Cristal del lago and Top House, with which it identifies its entire line of electronic items. Today I haveown brands have a share of around 15-20% depending on the chain, and it is still below what happens in many developed countries in Europe. In Spain they account for 40% of total sales.