Falabella: Growth Options in Uncertain Times
In 2020, Falabella, one of the largest Latin American multi-format and multi-country retailers, faced increasing competition from the online world. The growth of online giants posed significant challenges for Falabella's senior executives, who needed to decide how to allocate investments in this highly competitive environment. There were also growth opportunities in the brick-and-mortar business in many Latin American countries. Falabella needed to assess how to compete in the dual online and off-line world. The COVID-19 pandemic had created additional challenges for Falabella's management team, as most shopping malls and stores were obliged to close for a long period of time, and the lower off-line sales were not expected to be fully compensated by increasing online sales. Should Falabella's executives continue to focus on the historical strength of Falabella, fuelled by horizontal, vertical, and international expansion? Should they focus their efforts on the online business and divest some of their current business units. Jorge Tarzij n is affiliated with Pontificia Universidad Cat lica de Chile.