Episode Summary: Retail Media & Consumer Insights in South America

Podcast: The CPG Guys
Hosts: Peter V.S. Bond & Sri Rajagopalan
Guests: Lucas Barros & Pamela Castro from Walmart Chile
Release Date: June 7, 2025

Introduction

In this episode of The CPG Guys, hosts Peter V.S. Bond and Sri Rajagopalan delve into the evolving landscape of retail media and consumer insights in South America, featuring insights from Walmart Chile's Lucas Barros and Pamela Castro. The discussion highlights how Walmart Chile leverages data and retail media to enhance consumer engagement and drive brand loyalty in a dynamic market.

Guest Introductions and Walmart Chile Overview

[00:45] Pamela Castro and [00:45] Lucas Barros introduce themselves as key figures in Walmart Chile's retail media and analytics divisions. Peter and Sri further welcome them, setting the stage for an in-depth exploration of Walmart's operations in Chile.

Lucas Barros emphasizes the foundational work in establishing Walmart Connect and Walmart Furnesis:

“We have built up the retail media and the retail analytic businesses and now they are primarily part of the strategic vision of Walmart” [10:38]

Pamela Castro adds:

“We are officially in the retail analytic world in Chile” [08:37]

Retail Operations in Chile

Lucas Barros provides an overview of Walmart Chile's extensive presence:

“We have almost 400 stores across all Chilean regions, reaching over 90% of households.” [14:09]

This extensive network ensures Walmart Chile's mission to “help people save money and live better” remains at the forefront of their operations.

State of Omnichannel and E-commerce in Chile

Discussing omnichannel strategies, Sri Rajagopalan asks about the integration of digital and physical shopping experiences in Chile compared to North America.

Lucas Barros responds:

“Chile outperforms other Latin American countries in mobile and internet access, with e-commerce penetration between 15-20%.” [16:11]

He notes that while Chile is advancing, there is significant room for growth compared to regions like the US and Europe.

Evolution and Impact of Retail Media in Chile

Lucas Barros explains the nascent yet rapidly growing landscape of retail media in Latin America:

“Retail media in Latin America is pretty new, launched in the last four to five years, and we're seeing significant growth due to its performance and ability to connect with large audiences.” [17:36]

Peter V.S. Bond inquires about the differences between Walmart Connect Chile and its US counterpart, prompting Lucas to detail the unique offerings tailored to the Chilean market.

Retail Media Solutions Offered

Lucas Barros outlines the current and upcoming services:

“Currently, our retail media services are 100% managed, but we are launching self-service capabilities for sponsored products by the third quarter.” [25:49]

He further mentions the impending launch of a Demand-Side Platform (DSP):

“We are about to launch a DSP in one and a half months, which will enhance our service offerings.” [26:11]

This expansion aims to provide brands with greater autonomy and efficiency in their advertising efforts.

Role of Loyalty Programs and Data Attribution

Pamela Castro discusses the critical role of Walmart Chile's loyalty program, MI Club, in data collection and personalization:

“Our clients provide their ID through MI Club, which allows us to personalize experiences and analyze customer behavior effectively.” [27:14]

She emphasizes that participation is opt-in, ensuring customer trust and data privacy:

“Customers provide data willingly, enhancing our ability to serve them better.” [28:30]

Case Studies and Success Stories

Highlighting practical applications, Pamela Castro shares success stories that demonstrate the effectiveness of Walmart Chile's retail media strategies:

1. Product Launch Optimization:

   “One supplier launched temp products based on our data insights, resulting in informed decisions that improved product placement and performance.” [34:36]

2. Coca-Cola Campaign:

   “Coca-Cola executed a campaign with Walmart Connect that increased ticket sales by 14% through targeted in-store advertising and strategic placement.” [34:36]

These examples illustrate the tangible benefits of integrating data analytics with retail media initiatives.

Future Innovations and Strategic Plans

Looking ahead, both Lucas Barros and Pamela Castro outline their vision for Walmart Connect and Walmart Furnesis:

Lucas Barros mentions the migration to an international platform to accelerate product offerings and self-service capabilities:

“Migrating to our international platform will double the velocity of our product development.” [38:21]

Pamela Castro discusses advancing customer and category analytics:

“We aim to connect operations and supply KPIs with customer and category KPIs to provide an end-to-end vision for brands.” [40:41]

This strategic focus aims to enhance decision-making processes and better align with consumer needs.

Conclusion

Hosts Peter V.S. Bond and Sri Rajagopalan express their gratitude to Lucas Barros and Pamela Castro for sharing valuable insights into Walmart Chile's approach to retail media and consumer data analytics. The episode underscores the importance of data-driven strategies and personalized consumer engagement in fostering brand loyalty and driving growth in the South American market.

Notable Quotes

• Lucas Barros on building Walmart Connect Chile:

  “We have built up the retail media and the retail analytic businesses and now they are primarily part of the strategic vision of Walmart.” [10:38]

• Pamela Castro on Walmart Furnesis:

  “We are officially in the retail analytic world in Chile.” [08:37]

• Lucas Barros on Chile's e-commerce penetration:

  “Our e-commerce penetration is between 15-20% in the market.” [16:11]

• Pamela Castro on data personalization:

  “We are working very hard to improve the experiences for most of our clients through Walmart Furnesis.” [27:14]

• Lucas Barros on future plans:

  “Migrating to our international platform will help us have a huge jump in our product offerings and self-service capabilities.” [38:21]

Key Takeaways

• Walmart Chile's Extensive Reach: Operating nearly 400 stores, Walmart Chile serves over 90% of households, ensuring significant market penetration.

• Emerging Retail Media Landscape: Retail media is a relatively new but rapidly growing field in Latin America, with Walmart Chile at the forefront of this expansion.

• Data-Driven Personalization: Utilizing data from loyalty programs, Walmart Chile personalizes consumer experiences and provides actionable insights to suppliers.

• Managed to Self-Service Transition: Currently offering managed services, Walmart Connect Chile is transitioning to self-service platforms, enhancing flexibility for brands.

• Strategic Future Developments: Plans to migrate to an international platform and integrate comprehensive KPIs signal robust future growth and innovation in retail media services.

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