“There is a rebound in sales, but we are not like last year”

What assessment do you make, in terms of work and business, of the ongoing pandemic?
For us, 2020 was really a very good year, commercially and in terms of the relationship of the Network with each of the businesses. Although the group was very developed, since on July 1 we turned 18, and we already had almost daily contact, everything new that the pandemic brought forced us to be in much closer contact to strengthen the work day by day. Everything was new, like the fact of having the stores closed, something that had never happened. Finally, it was a very good year, which from the beginning generated doubts and fears in us, but we learned a lot and adapted to the market requirements.

Surely the first months were, as for everyone, the most disconcerting. When did you start to see changes?
Starting in May we had sales take off, all the businesses grew incredibly throughout the year and positioned themselves very firmly, each in their locality. Working as a group allowed us to act centrally and we managed to get suppliers to supply us with merchandise, not all that each individual business would have wanted to have, but we did not lack it throughout the year based on the actions we took. It was a positive year in terms of sales and profitability.

The challenge of starting e-commerce must not have been the same for all merchants.
At first we had difficulties because e-commerce was not in the minds of all merchants. This made many start working first through WhatsApp and then move on to e-commerce, always looking at the needs of each person in their area of ​​influence.

This new way of communicating and doing business was not only established in the relationship with the consumer but also with the suppliers. What was that process like?
The first three months were very uncertain because the companies were also closed and they only sold us the merchandise they had available in their warehouses. Then came a period in the pre-purchase mode to ensure the price and deliveries, distributing the merchandise that was assigned to us as a Network to all the members so that each one could receive. We were able to do it since the companies know the good behavior of our businesses and that assured us of supply, all the companies complied with us, although it was not in all cases on the scheduled dates.

How do you imagine both sales and commerce and the behavior of consumers when the pandemic has passed?
While e-commerce has grown, there are still many consumers who want and need to go see what they are going to buy. Our sector maintains a significant percentage of users who want to watch the television or the refrigerator, even if they later end up purchasing electronically.
I believe that e-commerce and physical stores will continue to complement each other. Another issue is that many merchants did not pay attention to electronic commerce due to the price wars that were generated and the low profitability it left. Let's not forget that before this pandemic more than one who was dedicated exclusively to selling electronically had serious problems.

Physical and Virtual
Montemurro does not believe that e-commerce will displace the physical store. "Although electronic commerce has grown, there are still many consumers who want and need to go see what they are going to buy. Our sector maintains a significant percentage of users who want to watch the television or the refrigerator, even if they later end up buying electronically," he said.

Outside of the purchase and sale, organizationally and in the administration of the Network, how were they handled?
In some aspects it was like starting all over again but we applied all the technology to be closer than ever throughout 2020. In 2021 we continue to take advantage of the entire technological aspect, cell phones, emails, Wathsaap and Zoom to get the best business for all our businesses. Good contact with all suppliers makes the work more decisive even though sometimes, for different reasons, the times are not what we expect. Let's not forget that not all of us are in offices every day.

Do you aim to expand the Network or do you have plans to incorporate partners?
Yes, of course, but always maintaining the business profile that we have been adding during all these years and that has not given such good results, which is adding leading businesses in their area and with very good behavior towards suppliers.

How many associated companies and how many sales outlets do they have?
We have 65 companies with almost 90 outlets distributed in Capital, Greater Buenos Aires, Province of Buenos Aires, Entre Ríos, Córdoba, Tucumán, Santa Fe and San Juan.

Did the effects of the pandemic impact equally or similarly in all areas and in all businesses or were there product categories where you noticed differences, for the worse or for the better?
Last year the problems were general. The first thing that began to be missing was everything related to electronics, cell phones, notebooks, LEDs, and as the year went by, supply problems increased in other lines.
In March, April and May of this year the drop in sales became very noticeable, and that caused the supply to normalize. During June and so far in July there is a rebound in sales to the final consumer, but we are not at last year's levels.

Looking to the immediate future and thinking about returning to normal, or new normal, what are the expectations?
The most important thing is to continue keeping the general expenses of the businesses in order and also maintain billing levels. We believe that the Ahora 12 and Ahora 18 financing plans will be fundamental for the sale. Otherwise, it will be very difficult for the user to access the products.

by Rodolfo Pollini