Día Día Practimercados operates a network of small grocery stores in Venezuela and is able to ensure reduced food prices for its low-income customers through operational efficiencies and by securing distribution agreements with large national suppliers.
Focus: Food distribution, Economic development
Geographic Area of Impact: Venezuela
Model: Social Business
Number of Direct Beneficiaries: 100.000 loyal households and more than 1 million customers per month (2013)
Annual Budget: USD $ 140 Millions (2013)
Percentage Earned Revenue: 100%
Customers in low-income neighborhoods throughout Venezuela pay on average 30% more for their food at small independent supermarkets or informal outlets, which significantly reduce their economic capacity and savings because grocery takes a large portion of their household budget. To help address this issue José Vicente Aguerrevere founded Día Día Practimercados in 2005, dedicated to the efficient distribution of food to excluded sectors in Venezuela by eliminating intermediate layers in the value chain of food distribution. Although counterintuitive, the reality is that being poor comes at a high price, given the high inefficiencies of the distribution channels serving informal suppliers of basic goods.
Innovation and Activities
Today Día Día operates a network of small food stores located in popular areas throughout Venezuela with easy access to transportation (e.g next to subway stations, bus stops), with extended care hours (365 days a year, from 7am to 11pm ), a wide range of grocery products from leading brands, and is able to ensure reduced food prices for its low-income customers through operational efficiencies and by securing purchasing and distribution agreements with large national suppliers. Currently, the Día Día Practimercados distribution platform operates 35 stores through 7 states and 16 cities in Venezuela, with over 100.000 loyal customers and more than one million transactions per month, whilst employing almost 1,000 sales floor associates. Día Día promotes the development of the communities it serves through recruitment, training, and staff development so that everyone who joins the company has equal opportunity to become manager of a store in their community.
Día Día is also seen as an efficient distribution platform for grassroots services for other industries including Banking, Insurance, Healthcare and Telecommunications, having developed successful partnerships with Development Banks including Banesco Community Banking Group and Zoom. Día Día is also in the process of developing a model for neighborhood health clinics, as well as a distribution model for telecommunications products and services in 2014.
José Vicente Aguerrevere is a Mechanical Engineering graduate from the Simon Bolivar University in Venezuela (1997 Summa Cum Laude) and holds a MBA from Harvard University from which he graduated with the highest honors (Baker Scholar) in 2002. Prior to founding Día Día in Venezuela, José Vicente Aguerrevere worked as a management consultant with Booz Allen & Hamilton in Latin America and the U.S., and as an investment banker with Merrill Lynch in Europe.
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