Fernando Tracanella Higher Quotations

There were some drivers for increasing margins in 2005, including better negotiations with suppliers and higher pricing points in stores. The company made several deep changes in terms of the way we negotiate with suppliers, as well as how pricing in stores, present products...category management issues.

The company's sales were affected by deflation in food prices, lower disposable income for consumers and higher consumer debt levels because of previous purchases of durable goods on credit.