Líder
Encyclopedia
Líder is a Chile
an hypermarket
chain originally owned and operated by Distribución y Servicio
(D y S) but sold to American Wal-Mart
in 2009.
The stores sell groceries, home electronics, school supplies, and home supplies. Most also have a small indoor strip mall
, usually featuring fast food, especially McDonalds, watch, cell phone, and other similar booths, kiosks and shops.
Líder's origins lie in the 1893 establishment of Distribución y Servicio
(D y S) as an important distribution company. That company opened the Tres Montes general store in 1921. In 1957 the company opened Latin America's first supermarket in Santiago, Chile
followed by the opening Ekono a discount supermarket in 1984. In 1995 the Líder hypermarket was born and was followed by the Líder Vecino neighborhood markets and Líder Express concepts in 2000 and 2003 respectively. The company added a membership warehouse store in 2007.
The company was acquired by Wal-Mart in 2009. Wal-Mart purchased a 58.3% share in the D y S company with the remainder in the hands of the Ibáñez Scoot brothers. In addition to this Wal-Mart has followed up with an offer to purchase the remaining stock from the brothers. The company divested from any Cuba
n products like rum
due to the embargo on Cuban products between the United States and any American company or subsidiary causing a consumer outcry and legal hurdle for Wal-Mart since this violates Chilean free market and competition laws.
Líder stores began selling Cuban products in addition to products from countries banned in the United States at half price to eliminate them from stock before the merger was complete. This caused a buying frenzy of Cuban rum that made headlines. This also caused an uproar from the public that was accustomed to certain products from certain countries. The largest retailing in the country no longer importing certain goods will certainly raise the price. Competitor Jumbo was inspired to begin a publicity campaign that they did not discriminate in their product selection by nationality. In fact, several members of the National Congress of Chile
wrote a bill that would make it illegal to discriminate merchandise by country of origin. The Chilean authorities have stated that individual companies have wide latitude in determining what products they do and do not sell and why, however some in congress have insisted this move violates fair competition laws.
All Líder stores are unionized
and offer full benefits. The takeover by Wal-Mart has made union leaders anxious due to Wal-Mart's reputation for union busting
. Líder stores also employ child labor
, bagging groceries; they must however be in school.
The company competes with Tottus
supermarkets.
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
an hypermarket
Hypermarket
In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise...
chain originally owned and operated by Distribución y Servicio
Distribución y Servicio
Distribución y Servicio is a Chilean company that operates several businesses, including Líder hypermarkets and Ekono supermarkets. Since 2009 the main controller is Wal-mart and the founder family Ibañez.-External links:***...
(D y S) but sold to American Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
in 2009.
Overview
There are over 80 Líders in the Republic of Chile including the original hypermarket in addition to the express, and neighborhood market concepts complemented by the Lider.cl website.The stores sell groceries, home electronics, school supplies, and home supplies. Most also have a small indoor strip mall
Strip mall
A strip mall is an open-area shopping center where the stores are arranged in a row, with a sidewalk in front. Strip malls are typically developed as a unit and have large parking lots in front...
, usually featuring fast food, especially McDonalds, watch, cell phone, and other similar booths, kiosks and shops.
History
Distribución y Servicio
Distribución y Servicio is a Chilean company that operates several businesses, including Líder hypermarkets and Ekono supermarkets. Since 2009 the main controller is Wal-mart and the founder family Ibañez.-External links:***...
(D y S) as an important distribution company. That company opened the Tres Montes general store in 1921. In 1957 the company opened Latin America's first supermarket in Santiago, Chile
Santiago, Chile
Santiago , also known as Santiago de Chile, is the capital and largest city of Chile, and the center of its largest conurbation . It is located in the country's central valley, at an elevation of above mean sea level...
followed by the opening Ekono a discount supermarket in 1984. In 1995 the Líder hypermarket was born and was followed by the Líder Vecino neighborhood markets and Líder Express concepts in 2000 and 2003 respectively. The company added a membership warehouse store in 2007.
The company was acquired by Wal-Mart in 2009. Wal-Mart purchased a 58.3% share in the D y S company with the remainder in the hands of the Ibáñez Scoot brothers. In addition to this Wal-Mart has followed up with an offer to purchase the remaining stock from the brothers. The company divested from any Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
n products like rum
Rum
Rum is a distilled alcoholic beverage made from sugarcane by-products such as molasses, or directly from sugarcane juice, by a process of fermentation and distillation. The distillate, a clear liquid, is then usually aged in oak barrels...
due to the embargo on Cuban products between the United States and any American company or subsidiary causing a consumer outcry and legal hurdle for Wal-Mart since this violates Chilean free market and competition laws.
Líder stores began selling Cuban products in addition to products from countries banned in the United States at half price to eliminate them from stock before the merger was complete. This caused a buying frenzy of Cuban rum that made headlines. This also caused an uproar from the public that was accustomed to certain products from certain countries. The largest retailing in the country no longer importing certain goods will certainly raise the price. Competitor Jumbo was inspired to begin a publicity campaign that they did not discriminate in their product selection by nationality. In fact, several members of the National Congress of Chile
National Congress of Chile
The National Congress is the legislative branch of the government of the Republic of Chile.The National Congress of Chile was founded on July 4, 1811...
wrote a bill that would make it illegal to discriminate merchandise by country of origin. The Chilean authorities have stated that individual companies have wide latitude in determining what products they do and do not sell and why, however some in congress have insisted this move violates fair competition laws.
All Líder stores are unionized
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
and offer full benefits. The takeover by Wal-Mart has made union leaders anxious due to Wal-Mart's reputation for union busting
Union busting
Union busting is a wide range of activities undertaken by employers, their proxies, and governments, which attempt to prevent the formation or expansion of trade unions...
. Líder stores also employ child labor
Child labor
Child labour refers to the employment of children at regular and sustained labour. This practice is considered exploitative by many international organizations and is illegal in many countries...
, bagging groceries; they must however be in school.
The company competes with Tottus
Tottus
Tottus is a chain of Chilean supermarkets, that competes with Líder, Jumbo, and Santa Isabel supermarkets.-History:The company was established in Peru in 2002, and was acquired by Chilean retailer Falabella in 2004. The company has 26 locations with over a dozen in the Santiago Metropolitan Area...
supermarkets.