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Wednesday, January 20, 2010

The EXITO nullity debacle

Before I get into discussing the seizure of EXITO stores by chavista goons today I thought that it would be good to add a sense of perspective. The major stockholder of the CATIVEN group which holds EXITO and CADA is the Casino group of France. They declared today that losing the EXITO stores would simply not affect their balance sheets because the Venezuelan operation represents about 1% of its turnover and almost zero profit. So here, at home, we have been anguishing over the EXITO takeover, watching workers fighting it out among themselves, thinking for ourselves it was a big deal, wondering how it will affect our access to increasingly scarce and expensive items, when in fact EXITO is almost irrelevant for its owner.

I cannot think of a better example to illustrate how irrelevant Venezuela is becoming in a globalized economy. Imagine what we will represent in 5 years from now if Chavez does not leave office. No more than a mediocre occasional oil supplier?

10 comments:

  1. Juanimador6:03 AM

    I just finished watching this on Globovision. I feel so sorry for the workers of Cativen. One could see that where the seizure hadn't taken place the workers were totally protesting it, fearing for their job security and citing countless examples of government seized private industries that don't pay their workers anymore. I wonder Daniel if you could take some pictures of EXITO today and take some in maybe 3 or 4 months so a comparison can be made (stocked items, variety of items, prices, general conditions of the store etc). Love your blog! Keep it up.

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  2. one man's trash is another's treasure, or i guess th chavecistas are just fighting for the leftover bones

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  3. An Interested Observer12:29 PM

    If an established, successful organization like the Casino group can't make money on that chain, just imagine how profitable it will be in the hands of the Chavistas.

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  4. sheik yer bouti2:08 PM

    El Mucho Macho will not leave office until someone down there grows a pair and shoots his goofy ass....it doesnt get any more complicated than that.

    Ultimately the Venz people are to blame and reaping their just rewards for silliness and laziness.

    Your ONLY hope is if Hugo becomes stupid and dillusional enough to pick a fight with Columbia or the USA vis Dutch Islands, then it will end quickly.

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  5. AIO!

    Exactly! It is nice to know that some US guy can appreciate the French success at merchandising :)

    Could Wal Mart make it in Venezuela?

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  6. Sheik

    So when is someone going to grow a pair and shoot Obama?

    Really............

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  7. Island Canuck2:23 PM

    Daniel said:
    "Imagine what we will represent in 5 years from now if Chavez does not leave office."

    I would be very surprised if he lasts 3 months. It will be very interesting to see what happens in the March on Saturday.

    His paranoia is so high right now that he may react very harshly.

    Did you see the marks on his face & under his right eye. That's from lack of sleep caused by his paranoia IMO.

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  8. Milonga4:11 PM

    Off-topic: Did Chavo really blame the US for causing the earthquake?
    http://informe21.com/hugo-chavez/vive-tv-estados-unidos-culpable-provocar-terremoto-haiti

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  9. Anonymous11:29 PM

    Walmart would do no better in Venezuela... same problem importing and divisas, the sindicatos would wreak havoc, etc.

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  10. Anonymous9:24 AM

    Not even all mighty Wal-Mart could make it if it had to work with the corrupt exchange system in Venezuela.

    Sheik yer Bouti's solution is the only one available.

    Alejo, VZLA Paraiso Perdido

    ReplyDelete

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