Companhia Brasileira de Distribuiçao : Presentation 4Q 2020

1

Hello! Welcometo Digital Day!

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Our agenda

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02

03

04

Introduction	Market Context	Our Digital Strategy	Q&A
Digital Team & Omnichannel	Consumer behavior	Accelerating the Transformation	Questions and answers.
GPA Data Platform	changes and trends	of the GPA Platform

3

Introduction	Market Context	Our Digital	Q&A
		Strategy

Who we are

Jorge Faiçal

Laurent Cadillat

Othon Vela

Rodrigo Pimentel

Lucas Ceschin

4

We are made of stories

and recurring customer journeys

Introduction	Market Context	Our Digital	Q&A
		Strategy

5

	Relevant brands:
~50%	Pão de
of our e-commerce	Açúcar and
customers are	Extra
multichannel

> 9.5 MM

active customers inmore than the last 12 months 900

stores

/ more than 400

MM

visits

These stories, in grand scale and

numbers

GPA

Introduction	Market Context	Our Digital	Q&A
		Strategy

> 20 MM

loyalty customers

3 apps

(PA MAIS, Clube Extra +

James) with

> 17.5 MM

downloads

> 240 MM

visits per year to our

digital platforms

6

We are a great

CUSTOMER DATA PLATFORM

that connects and brings together all GPAstrategic assets, both physical and digital.

Introduction	Market Context	Our Digital	Q&A
		Strategy

Stories

Experiences

Journeys

PLATFORM

Families	OF CUSTOMER	Relationships

KNOWLEDGE

Users

Customers

Consumers

7

1. PLATFORM
   THAT'S
   CONNECTED WITH THE RAPID TRANSFORMATION OF RETAIL

Introduction	Market Context	Our Digital	Q&A
		Strategy

This lets us capturecustomer behavior trends, capitalizeon technology, and understand and anticipate the rapid changes in purchasing habits.

8

A context that we can visualize, understand, and adapt to.

4 great trends:

Introduction	Market Context	Our Digital	Q&A
		Strategy

1.2.

Experience and	Hyper-personalization
convenience	and humanization

80%	91%
of consumers point to	of consumers show
speed, convenience,	propensity to buy from
knowledge, and service	companies that can offer
as being most important.	personalized
	recommendations and offers.

3.

Customer behavior dynamics

Behavior changes have been dampened during COVID-19.

4.

Digitalization

1/3

of users joined the channel after COVID- 19, and most intend to continue using it.

(Source: PWC, Applause and Bain)

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NEW BEHAVIORS

In this situation,

CONSUMER DATA

becomes the core STRATEGIC ASSETto understand new trends and consolidate the digital transformation.

Introduction	Market Context	Our Digital	Q&A
		Strategy

more

Convenience

more	more
One-stop
E-commerce
shop

PLATFORM

OF CUSTOMER

KNOWLEDGE

more	less
Safety	Frequency

more Hyper-

connected

10

Introduction	Market Context	Our Digital	Q&A
		Strategy

And based on this customer viewand their journeys and stories, we were able to leveragethis 2020 sequence to anticipate and acceleratethe development of our Digital Strategy

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E-commerce(1P)

E-commerce

1P

PLATFORM

OF CUSTOMER

KNOWLEDGE

Introduction	Market Context	Our Digital	Q&A
		Strategy

3 food websites TOP OF MINDwith strong and profitablegrowth!

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E-commerce (1P)

Introduction	Market Context	Our Digital	Q&A
		Strategy

DC expansion

February 2020	October 2020
1CD	1DC
1mini DC	5mini DCs

Increased orders/day capacity

by 146% in 2020

Express expansion

and Click-and-Pickup

126 295

storesstores

February 2020

2020 LE

> 6 MM

orders/year

Service

indicators (otif)

close to

95%

of PDA

36%

sales

Click-and-Pickup

> 12 MM

km travelled by our

trucks

> 1.000

vehicles making

deliveries

simultaneously

(Source: e-bit Nielsen)

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E-commerce (1P)

76.6% self-service market share (var. food)

GMV growth

approx.

240%

YTD

2020

2021

2017

2018

2019

Introduction	Market Context	Our Digital	Q&A
		Strategy

Increased

share of+ 250% perishables

2020 vs 2019

50%	+202%
of e-commerce	new
customers
customers are
omnichannel

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James

Introduction	Market Context	Our Digital	Q&A
		Strategy

GPA: an existing e- commerce model that encompasses

ALL purchase

missions!James showing strong growth and expansion!

E-commerce

1P

PLATFORM

OF CUSTOMER

KNOWLEDGE

15

James

Our LAST MILE integrated initiative showing strong growth.

James consolidates our "All on the palm of your hand" app strategy

Growth

Growth

• 27 times

From Jan. to Sep.

2020

Growth

> 3 times

From Jan. to Sep.

Expansion

52 347

STORES STORES

Jan. 2020

Sep. 2020

18 29

Cities Cities

Customers

recurrence of most

loyal customers,

Jan. to Sep. 2020:

> 17%

recurrence of Prime

customers vs. recurring

customers

> 46%

increase in

customers > 60

years old:

2020

104%

Digital initiatives

Continuousimprovement in the experienceof our digital and omnichannel journeys.

At the stores, websites, and apps.

Introduction	Market Context	Our Digital	Q&A
		Strategy

Stores+

Websi

tes

APPs Ecommer

E-commercece

1P

PLATFORM

OF CUSTOMER

KNOWLEDGE

17

Continuous improvement in the experience of our digital and omnichannel journeys!

APPs

New APP format:

Cliente Mais and

Clube Extra have

> 14 MM

downloads and

> 170 MM

visits LTM

Chatbot service

on the app, with

an AI.

> 1.5 MM

messages per month

We're going where the customer is: WhatsApp

Personal Shopper for wines and the elderly. Order tracking via WhatsApp

New Adega home

• 4 MM units

sold in 2020.

• 250% growth over 2019

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We have many digital initiatives for higher-tech retail and to improve our customers' journeys and experience.

Digital initiatives

	> 150
	totems
	for self-checkout
PIX implemented in	available at our
stores.
more than
500 stores
starting Nov. 16

And with an agile innovation culture that values talent.

> 25 cross-	~2 K employees
functional squads	in WFH

• 80 startups

and scale-ups plugged into the GPA business

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We have entered a phase of accelerated integration of our strategic assets with the launch of our new platform.

GPA Marketplace (3P)

APPs	Stores	+
Websi
tes

MARKETPLACE

(3P) Ecommer

E-commerce

ce

1P

1P

PLATFORM

OF CUSTOMER

KNOWLEDGE

The platform starts off in a business with frequencyand recurrence! Strengthening our leadership in food e-commerce with the greatest assortment in the market.

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GPA Marketplace (3P)

Specialty

Generalist

Offering multiple

Platform

Platform

Offers services and

segment products and services to specific audiences.

Pão value proposition

"The best way to live the life you deserve"

Experiential Brand

e.g. all online players for wine, recipes, culinary kits

products from various industries/segments.

Extra value proposition"Get the best cost/benefit for your time and money"

A democratic and agnostic brand

e.g. sells tires, furniture, home products, etc.

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Marketplace development drivers

We are leaders in	Millions of customers	We pioneered
food e-commerce in	visit our stores and	food e-commerce (Pão
the country, and our	websites every month	de Açúcar Delivery -
customers have high	and have signed up	1995) and loyalty
purchase frequency	for the Pão de Açúcar	programs (Pão de
	Mais and Clube Extra	Açúcar Mais - 2000) in
	programs	Brazilian retail.

Millions of downloads	E-commerce integrated
of the Pão de Açúcar	to loyalty program
e Clube Extra apps.	apps, providing a
	complete multichannel
	experience.

Commercial strategy

Complementing our core business:

PARTNERS

Auto	Personal
care

Pets	Non-
food

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GPA Marketplace (3P)

A marketplace that starts off with > 240 MM visits on our digital platforms

10 times

more sellers

in 2021 vs

2020

EXPRESSIVE GMVSELLERS GROWTH

GROWTH	> 26 times

ASSORTMENT GROWTH

Current 1P assortment:

15,000 items

In 3 months with 3P:

30,000 items

In 12 months with 3P:

> 400,000 items

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A loyalty platform that includes a new version

of the My Rewards

APPs

Stores

+

Stix

program

and our Stix

loyalty coalition model

Websi

tes

MARKETPLACE

(3P) Ecomm

E-commerce

erce

1P

1P

PLATFORM

OF CUSTOMER

KNOWLEDGE

My

Rewards

Loyalty

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GPA Loyalty

Accelerate the integration of our assets.

Identification of 70% of total sales on

Multi-retail (90% on Pão de Açúcar and 62% on Extra).

• Exclusive discounts
• Personalized discounts
• Stix rewards for loyalty
• Promotions anticipated for the most loyal

The more customers engage with digital products on the loyalty program, the greater the wallet share for GPA.

	Customers	Average ticket
	(MM)		(R$ '000/year)
Total	9.5	100%	2.0
Do not use the app	4.9	52%	1.1
Use the app	4.6	48%	2.9
Use My Discounts	3.1	33%	3.6
Use My Rewards	0.9	10%	7.0

Note: last 12 months ending on 3Q20

Customers who use My Rewards spend

6.3 times

more than those who don't use the app

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Stix

FIRST COALITION PROGRAM IN

BRAZILIAN RETAIL!

01

02

03

Consumers buy at partner	Accrue Stix points	Exchange for a wide
stores and/or use partner	according to their	array of rewards
credit cards	spending

Partners

Value Proposition

• To create a leading multichannel loyalty program in Brazil, with a clear value proposition for mainstream customers.
• Attractive and affordable catalog to increase redemption frequency and maximize customer impact.
• Partnerships with strong traffic generators, to drive frequency, data, and cross-selling opportunities for GPA.

More than 60 MM loyal customers

Overlap between GPA and Drogasil customers has been about 1.3% in the first 45 days of the program.

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Strengthening of our value proposition through our

APPs

Stores

Stix

logistics platform.

Websi

tes

MARKETPLACE Ecomm

E-commerce

erce

1P

1P PLATFORM

• OFKNOWLEDGECUSTOMER

FULFILLMENT

GPA LOG

My

Rewards

Loyalty

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GPA LOGISTICS PLATFORM

END-TO-ENDJOURNEYVIEW OF CUSTOMERS, WITH THE POSSIBILITY OF LEVERAGING OUR MARKETPLACE PLATFORM.

DRIVERS

• Customers
• Scale
• Strong brands

• Experience
• Footprint
• Processes

GPA has knowhow in logistics

to compete with logistics service providers

ASSETS

>250 MM		OPERATING	+
visits on our digital	CUSTOMER FLOW
KNOW-HOW
platforms

✓ Logistics		GPA has worked
TECHNOLOGY	in developing
optimization
WMS, TMS, and
✓ Tracking and
	OMS
monitoring
✓ Agility

CAPILLARITY

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A platform that integrates and consolidates our assets and

APPs

Stores

Stix

goes beyond

retail...

Websi

tes

MARKETPLACE Ecomm

E-commerce

erce

1P

1P

FULFILLMENT

GPA LOG

My Rewards

Loyalty

PLATFORM

OF CUSTOMER

KNOWLEDGE

+ DIGITAL WALLET

DATA

MONETIZATION

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APPs

Stores

Stix

Websi

tes

MARKETPLACE Ecomm

E-commerce

erce

1P

1P

Loyalty

My Rewards

PLATFORM

OF CUSTOMER

KNOWLEDGE

DIGITAL WALLET

FULFILLMENT

GPA LOG

DATA

MONETIZATION

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GPA Platform

APPs

Stores

GPA

Websi

Stix

Marketplace Platform

Network

Effect

GPA Logistics Platform

tes

MARKETPLACE Ecomm

E-commerce

erce

1P

1P PLATFORM

OF CUSTOMER

KNOWLEDGE

FULFILLMENT

GPA LOG

DATA

Loyalty

My Rewards

DIGITAL WALLET

GPA Loyalty

Platform

Network

Effect

GPA Digital

Payment

Platform

MONETIZATION

GPA

Monetization

Platform

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Thank you

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