Forever 21, FNAC, Walmart and Lush: Why these brands have left Brazil

Not all Global It can translate its success in Brazil.

Networks such as McDonald’s, Carrofore and Zara were integrated, while others like Forever 21, FNAC, Walmart and Lush faced obstacles that led to the end of their operations in the country.

A combination Construction challengesWere, and,, and,, and,, and,.. Strategic errors E. Brazilian market specifications This is decisive to these exits. Remember the four exits of Marks They left The desire No. Brazilian user.

Forever 21

Forever 21: US court should be authorized for sale. / (Jeena Moon/ Bloomberg)

A. Network 21 Network forever He arrived in Brazil in 2014 and promised to democratize young fashion at cheaper prices. Failed. The model working in the United States does not comply with Brazilian reality.

Import costs, high taxes and logistics difficulties have raised the final price of products. In practice, the network has not been able to provide the main attraction of the United States here, cheaper.

In addition, fast fashion requires a scale and high inventory turnover, which does not pursue the Brazilian operation. The competition of Asian platforms such as Shoppy and Sheen with low prices and aggressive logistics has accelerated the decline.

The global crisis is also weighted. In 2019, the matrix went to the United States and reduced the less profitable markets. In Brazil, brand collected lawsuits for delay in brand rents,

FNAC

Logo from FNAC to Store Entrance in Paris in France 20/06/2013 Reuters/Charles Platia (Charles Platia/Reuters)

A. French Network of Technology, Culture and FNAC EntertainmentSince there are so many worshipers for Brazil, they have never entered like in France.

This operation has collected years of injuries and does not reach the required level.

In practice, FNAC is good in the concept, but bad sale. Brazilian did not buy enough to handle that store model.

In 2017, the network was sold Culture is a bookstoreThere are also difficulties for this. A year ago, all physical stores and e-commerce were closed.

Walmart

Walmart Brazil: (Diego Herculeno/Norfoto/Getty Images)

Oh Walmart He entered Brazil in 1995 with the plan to dominate retail. He left for 2018 and sold 80% of the operation to the Advent Fund. The reason? Trouble in understanding the Brazilian user.

Failed for local interests for betting on “lower cost every day”, such as settlement pamphlets and aggressive reduction in specific products.

In addition, it failed to consolidate the brands you purchased. This operation became a confused mosaic of flags and shapes. Internal bureaucracy decisions crashed. And the 2015-2016 crisis has worsened everything.

Advent Fund rebuilt the company A large groupIt was sold to the carifo by 7.5 billion by 2021.

Lush

Products from British Cosmetics Company Lush announcing departure from Brazil (lush/exposure)

Lush tried twice to come home in Brazil.

The British brand vegan and handmade cosmetics left Brazil for the last time in 2018.

Despite the increase in sales, the company never worked in blue. High taxes, expensive logistics and control difficulties have consistently changed the operation.

“Brazil is a very difficult market for the British brand operation. Although sales are increasing, it is impossible to maintain high tax burden and prolonged economic depression and political instability,” the company said in a statement at the time.

The first attempt ended in 2007 by corporate problems. Second, the unstable political scene and a long depression have weight.

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