Buyout & Market Share
On December 16, 2007 it was announced that Wong was bought by the Chilean company Cencosud, the 100% of the assets from Wong were sold for an amount of 500 million dollars to the Chilean group, 200 in cash and 300 in stocks from the Chilean corporation.
This action, plus the fact that this very possibility was denied by Efraín Wong himself mere months earlier was taken very negatively by the Peruvian populace; marking the beginning of a slow decline in Wong market share.
The 2008 Independence Day Parade was viewed by many as a fiasco since Wong no longer had the required "nationalism" to hold such an event, however, its attendance still overshadowed a copycat event by rival Supermercados Peruanos.
As of September 2008, Wong market share has decreased to less than 30% of the market (from a high if 44% two years earlier) and shows no signs of going back up. Adding this to the fact that prices in Wong — being slowly standardized to Cencosud's levels — have risen by 11% overall in the last year, shows an uncertain future for Peru's former king of supermarkets.
Read more about this topic: Wong (supermarket)
Famous quotes containing the words market and/or share:
“The only reason to invest in the market is because you think you know something others don’t.”
—R. Foster Winans (b. 1948)
“Even under the most perfect Social Democracy we should, without Communism, still be living like hogs, except that each hog would get his fair share of grub.... Whilst we are hogs, let us at least be well-fed, healthy, reciprocally useful hogs, instead of—well, instead of the sort we are at present.”
—George Bernard Shaw (1856–1950)