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Despegar launches physical stores, increases competition with CVC

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Aware of a type of consumer that was previously under its radar, online travel agency Decolar, owned by Argentine group Despegar, is making its debut in the brick-and-mortar store segment in Brazil, confronting its biggest rival CVC.This week, the company opened its first eight stores in the country, located in the states of São Paulo, Rio de Janeiro, and Minas Gerais. In an interview with Valor, Alex Todres, the company’s managing director in Brazil, said the plan is to open three more stores by the end of this year in this first stage."The [idea of] online or offline [customer] is over. This is the only market in which customers are moving between online and offline," Mr. Todres said. "Part of this people [who buy in physical stores] is not being served by Decolar. These are new customers that get to know the company by visiting a shopping mall. It’s a safety trigger for that person to then get home and buy online," he said. According to a survey by Phocuswright consulting firm, nearly 47% of reservations in Brazil are made at physical stores.The base of physical customers includes older people or those with little experience in using technology. But this segment also includes travels with higher added value. The executive compared this opportunity with the group’s decision to invest in an app, which currently represents 40% of global sales.The company opened eight outlets, five of which in the state of São Paulo: at Shopping Anália Franco, in São Paulo; Park Shopping São Caetano, in São Caetano do Sul; Grand Plaza Shopping, in Santo André; ParkShopping Dom Pedro, in Campinas; and Bourbon Shopping, also in São Paulo.There is also a store in Rio de Janeiro, at BarraShopping.In Minas Gerais there are two, one at BH Shopping, and the other at DiamondMall, both in Belo Horizonte.Three more stores are planned for December, one in the countryside of São Paulo, at Jundiaí Shopping; and two in São Paulo city, Shopping Pátio Paulista and Morumbi Shopping.Since its founding in 1999, these are the first physical stores under the Decolar brand. The group has also invested in physical stores under the Despegar brand in Argentina, and...

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