Physic Store: Oba Hortifruti Group
Our Oba Hortifruti Group stores are characterized by an optimized layout when compared to the average in supermarkets: fruits, vegetables and greens are placed on low counters in the center of the store, allowing customers to immediately see the selection of products offered by Oba Hortifruti Group. Our characteristic layout of the store environment provides a differentiated shopping experience, while also offering a high level of customer service. Our establishments have trained employees, who facilitate assisted sales and provide convenience and comfort to our customers.
In addition, Oba Hortifruti Group stores offer a differentiated assortment of products, whether for the quality and origin of fresh food, or for the exclusivity of our winery (craft beers, wines, among others) and grocery (olive oils, sauces, among others) products which, in many cases, are found only on our chain. Oba Hortifruti Group has more than 1,300 SKU’s with Oba’s own brand, representing about 20% of sales. Our stores have, on average, 665 square meters, with 8 box structures per store and, on average, 4,000 inventory control units (or “SKU – stock keeping unit”) sold per month.
Physic Store: Oba Farm
Oba Farm maintains the same principles of quality and service as Oba Hortifruti Group, but in a larger and more thematic model, which refers to a farm. The furniture is composed of rustic wood, the decoration has typical farm items, with “animatronics” fruits (mechanically automated robot dolls), and the external architecture is in the shape of a barn. The layout is the same of Oba Hortifruti Group, with central fruits stands and a complete and clear view of the store. Oba Farm stores are generally larger than Oba Hortifruti Group stores and therefore also carry a wider variety of items, averaging 1,300 square meters, around 11 box structures per store and an average of 5,000 SKU units sold a month.
Our digital environment, launched in December 2019, represented 5.6% of the Company’s revenue in 2020. Due to the evolution presented since its insertion, we believe that this channel has significant growth potential. Our digital strategy is based on multichannel, that is, our customers make their purchases on-line while the selection and packaging of products takes place in our physical stores that work as mini DCs (distribution centers), serving the surrounding region. This allows us to take advantage of all the infrastructure and expertise already used in the stores, and, therefore, to leverage our sales per square meter without a significant increase in costs.
Our trained employees in FVG (Fruits, Vegetables and Greens) perform in the selection and packaging of products, ensuring that the digital customer has the same experience and quality found in physical stores. Thus, our digital channels, as well as our physical channel, have high recurrence.
We believe that the high recurrence of purchases guarantees a relevant competitive advantage over our competitors, since, through artificial intelligence initiatives and predictive algorithms, developed in partnership with the data analysis company Semantix, they offer alternatives and ideas at every interaction with the customer, we are able to closely monitor the behavior of our customers. Thus, we were able to create cross-sell and up-sell opportunities on the platform and generate personalized offers at each customer interaction.
Our digital model also includes the in-store delivery option, in which the customer saves time and convenience by picking up their online purchases at the physical store of their choice. Our digital platform has its own app, developed internally by the Company, in addition to partnerships with aggregators such as Rappi and iFood. Our own digital channels represented 83.4% of the 2020 digital sales revenue, while aggregators represented 16.6%. We believe that this direct channel with customers is a competitive advantage, as it allows closer monitoring of their behavior and, therefore, generates a greater capacity for up-sell when the customer contacts them to make a purchase.