Titans of business – Meet the management team behind Goisco Mega Club

Living the mantra, that you need to sow your seeds before the rain, the Goisco management team just completed the latest expansion to their mega club site. Today’s store is built on the original location that once grew the fruit and vegetables that earlier generations of the family sold in their first roadside stall. It is the third generation of the management team who are now benchmarking their business model and ambitions against global giants such as Wal-Mart.

TEXT KATY BRANUM

Strong Family Foundation
Like many success stories in Curaçao, this is a story of people moving to the island to have a better life. It was the grandfather of the current generation that originally came to Curaçao from Madeira. The grandfather petitioned the local government to obtain the land for agricultural purposes and began growing produce that he then would sell in a small stall next to the land he was farming. The first stall was a small wooden structure on the same site as the current Goisco Mega Club building.

Over time the grandfather expanded the business from a convenience store to a small minimarket. He sold fruit, vegetables and canned goods and it was known as the “Toko Fruteria Nobrega.” At a later stage this expanded to three minimarkets around the island. However, this added complexity was very difficult and time consuming to manage and administrate. Ultimately, this became overwhelming.

The fire presented a unique advantage with a combination of new blood and having a clean slate to rethink the business

It was time for the next generation to step in and assist; interestingly it was his daughter’s husband that stepped in to help the struggling business. This son-in-law (the father of the current management team) took over alongside two other extended members of the family.

New Opportunities
In 1993, a fire destroyed the building, and along with it, changes within the management team. One of the family members bought out the other managers, gaining controlling interest. This was the father of Joël, Elidio and Elsio Da Silva de Goes, the current generation of Goisco directors. It was also at this time that this new generation was introduced to the business, to support their father in his business endeavour.

Breaking New Ground
The fire presented a unique advantage with a combination of new blood and having a clean slate to rethink the business. From this tragedy, a new business model was conceived.

A key driver that gave them the courage to move forward was discussions held with their bank. The bank encouraged them to offer something new that would dramatically differentiate them from what others were offering on the island. This new business concept took inspiration from stores in the USA such as BJ´s Wholesale Club; these larger stores were selling both supermarket items and non-supermarket items together under one roof as a “club store concept.” This means a customer becomes a member to shop there and receives additional discounts.

Enlightening the Market
Today, the Goisco concept is readily accepted, but when this unique concept was first launched, local shoppers were accustomed to going from speciality store, to speciality store to purchase what they needed. This was also reflected with the shoppers, as they were not sure what “a club membership” meant from a shopping perspective. They had not heard of this before, and wondered if it was a kind of sports club.

As a management team, they understood that local people were set in their ways so in the beginning management was a little nervous, as they were not completely sure if the “mega store concept” would be accepted.

Gaining Momentum
In December 1997, Goisco opened the new concept store as “Goisco Wholesale Club.” Even though the local population did not understand what a “wholesale club” was, they were at least curious to find out.

The doors opened, and in the first couple of hours if Goisco sold $100 worth of goods, this was a big sale. Management was sweating. As the day progressed, more people started to come in and sales quickly improved. The next day sales were better, and the following day built on that.

My Enemy’s Enemy is My Friend
After three years, their first competitor arrived. “This was actually good for us, as it pushed us to further improve” said Joël. Their competition also helped to educate the local community about the “mega store” concept, resulting in increased awareness and a greater acceptance within the community.

The competition also forced them to react. The management team had to think of smarter ways to compete, leading to their first purchasing partnership with another local supermarket. Goisco discovered that by combining their orders with other local supermarkets and sending combined orders to the manufacturer, they were able to obtain lower prices and could then pass these savings on to their customers. They also learned that in some ways, their competition had a superior offering and thus, the bar had been raised. They responded, expanding again. The additional expansion placed them a long way ahead of the competition, giving them room to breathe. “We felt safer,” explained Joël. “We could sleep at night knowing that our competition really had to do something amazing to catch us.“

Walking the Walk
A key to their success is that they have worked hard over the years to build a very, very strong supply chain where they have a direct relationship with the manufacturers, thus securing the most competitive prices for their customers. Interestingly, it is a combination of factors including: the membership program and earning of points, new offerings such as the Goisco credit card, and emotional connections like Baby Tutu that make Goisco unique.

Benchmarking against Giants
Sam Walton the founder of Wal-Mart has always been a role model for Goisco management because of the similar backgrounds they share. Sam Walton started with a small store in Arkansas, USA in 1962. In many ways the Wal-Mart story resonates with the Goisco management team, as both businesses seem to have experienced a very similar journey in regards to building their enterprises.

Joël and Elidio explained, “When we visited Wal-Mart, they showed us how they run the business, which was a great insight since they are the clear leaders in our industry. A particular inspiration to learn was that they had adopted a similar strategy of working directly with the manufacturers and removing the middleman in their supply chain. This enables them to buy the product at a cost that no one else can compete with.”

Advice for New Entrepreneurs: Be a Man of Your Word
When starting a business, make sure you are always honest, as this builds trust. This means being honest with the bank and the people with whom you do business. Joël explained, “When you give your word, such as “please come by tomorrow and I will pay you,” and then you don’t pay as promised, you will instantly lose half the trust and goodwill that you had the day before.” When you stick to any agreements you have made, business will come to you; partners, suppliers, and customers all flow from there.

On the Front Foot
Goisco is constantly looking at the market and identifying new opportunities as Joël explained, “Knowing when to expand is about tapping into your gut instincts. When we get the feeling that the time is right and we have access to the right merchandise at the right price, then we know it is time to expand.” To be able to tap into this instinct, Joël makes it clear, “You have to have a clear vision of where your business is going; the more accurate you are, the better. “

Joël believes that people obtain great awareness and clarity in a time of crises. So even when the economy is not as strong as it could be, they invest, they expand. In Curaçao there is a saying; “Plant seeds when it is not raining, because when it starts to rain, it is too late.” When it is time to move, it means it is too late to invest.

Strong Future
Goisco is currently considering expanding to the other islands in the Caribbean to service a market in which Wal-Mart has no interest, however, the business model for this has yet to be decided – a franchisee path is one possible direction. Joël and Elidio concluded, “We really like what we do. Everyday we are here, often on the shop floor, we are doing our best to deliver the best customer experience we can.”