Foreign execs learn U.S. retail tools in program

TEYA VITU
Tucson Citizen
Feb. 3, 2003

The Brazilians strolling through JC Penney at Tucson Mall and Macy's, Neiman Marcus and Nordstrom in Scottsdale a couple weeks ago had a different idea from most shoppers.

They were shopping for ideas about visual merchandising, promotion alternatives, advertising, centralized buying, personnel management and the other nuts and bolts of retail.

These 16 retail executives from across Brazil were the first "students" in the new "Retail Tools for Retail Executives" offered by the Southwest Retail Center at the University of Arizona.

They run drugstores and specialty footwear, apparel and cosmetics stores in Rio de Janeiro, São Paulo, Pôrto Alegre, Curitiba, Vila Velha and Parnamirim.

"The idea is to understand the trends in retail in the U.S. and analyze best practices," said Marcos Gouvêa de Souza, a São Paulo retail consultant who organized the trip. "How could we apply this knowledge in our own market?"

No fear, the Brazilians did some shopping, too.

But most of their week in Arizona was spent studying the academics of retail from UA's School of Family and Consumer Sciences faculty as well as managers at retail stores. They also learned how to choose the best merchandise planning software from TCI Solutions, a Tucson firm that is the leading grocery enterprise software firm in the United States.

"They wanted an understanding of what the customer is looking for and how to manage your people (employees)," said Melinda Burke, director of the Southwest Retail Center, which linked the Brazilians with faculty and retailers. "What seems to be what they are lacking is how to manage a business over the long term."

The Brazilians got a firsthand look at the new Macy's format unveiled in September as well as how JC Penney two years ago switched to central distribution rather than each store individually ordering merchandise.

"We wanted to meet some retailers here and talk to them to receive and perceive the real flavor of what is going on here," Gouvêa said. "We really learned the importance of keeping a culture in company for innovation every single moment. You can never forget to create a culture to create constant innovation."

Gouvêa said European retailers have mastered the art of innovation far better than American retailers, who focused more on massive growth in the 1990s.

"You're doing well," he said, "but this is dangerous. This could make your company feel a little fat."

Carmen Ferrao was looking for American ideas that might work in her lower-end women's and family apparel chain in southern Brazil.

"We had the opportunity to see the U.S. market and have insight that can be transplanted for action into our businesses," said Ferrao, marketing director at Lins Ferrao, a 39-store chain based in Pôrto Alegre. "We had the opportunity to interact with U.S. retailers and listen to how they address strategy."

Ferrao wants to start a corporate university in Brazil, similar to UA's School of Family and Consumer Sciences.

"This helps develop associates that retail companies can hire," she said. "It's always very difficult to hire people. Companies have to provide their own training programs."

Along with learning from Americans, this trip to Arizona and New York also allowed the Brazilians to learn from one another.

"What is really rich in this type of program is the chance to interact among us," Gouvêa said. "We have here some competitors, but they are talking about their experiences with a different mind-set, much more friendly."

No other retail executive groups have signed up yet for the "Retail Tools for Retail Executives" program, but the Brazilians are already talking about returning next year. Each paid $2,000 for the 40-hour program.