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17/06/2020

I See Opportunities

Meet Jaime Andreazza, a founder and a current administrative director of the largest supermarket chain of Serra Gaúcha

 "If you do not have enough stock, you"ll never know how much you can sell" "We like  very much when the customer complains because it means that he is giving us the chance to get it right. The customer, with money, goes wherever he wants. When he complains, it means he wants to go back to our store" "I had been always teaching my children to work from an early age, and they liked it. I always made it very clear to them that if they want to stay with me it would be all right, but that if they want to pursue another profession, that would be all right too. But they like what they do. Diogo is born commercial (like me), and Matthew is more intellectual"

"I'm doing this for you!", said Jaime with his charismatic and lovely smile on his face. Having a reserved position towards the press (although extremely relational and active in the community and in the entities that he represented and still represents from leadership positions such as the Industry Chamber of Caxias do Sul and Sindigêneros), Jaime made an exception and accepted the invitation from magazine NOI to talk about his path. Being the third largest employer of Caxias do Sul (after Marcopolo and Randon) he welcomed the magazine's team one Saturday morning, the best time for him to relax and to talk about his life as the entrepreneur. "I don't really like public speaking. It's my position. But if you ask me about my business, I will be happy to talk with you! "he says modestly.

In fact, his passion for the company and each topic regarding it, is remarkable, the same as each chapter of the exciting history that makes up the path of the Andreazza brand (family name) for about 50 years in region Serra Gaúcha. Having acquired the father's brand, Jaime and his brothers (Marcos, Vitor and Mauro) developed the company until consolidating it into a supermarket chain with units in Caxias do Sul, Flores da Cunha, Farroupilha, Bento Gonçalves, Carlos Barbosa, Arroio do Sal and Vale Real, employing today about 3 thousand employees. But it is not enough, there are plans for more. "A store of 150 employees will be launched this year in Caxias do Sul, on the road number BR 116, and another – at the street Moreira César in April. Then we will have all together 35 supermarkets, "states the entrepreneur of just 58 years old.

One of our challenges on the day we were taking the interview was to capture a smile by Jaime Andreazza for our first edition of 2019. The conversation was broad going through past, present and future, culminating in a tour guided by him throughout the company’s administrative headquarters at the supermarket Super Andreazza in the Kayser neighborhood. We were passing through several sectors, but at no time his eyes were not shining so brightly as when we had come to the warehouse. And here we go! We got his the best smile! In contemplating the "mountains" of well-placed goods, each one on their respective shelves, the teams were working by organizing the items using the ladder. “Watch out!”, he warned when passing by in a hurry. Here we could fully understand what his world is about. We remember the situation of the truckers' strike (which almost paralyzed the whole country for about a week in the second half of 2018). “It was difficult for the country, but turned to a great opportunity for us," he said. "Because nothing was lacking in our warehouses. Just some groceries and products which require to be fresh. In fact, we kept the same service, "he recalled proudly.

The lesson came from the childhood. "I never liked seeing an empty shelf. I remember that by the time I was still working at my father's warehouse we were missing a mayo on the shelf for a whole week. Therefore I started to wonder whether we can order more to the store. So we were increasing the order until I reached the point of balance, which showed us that we need to place much bigger order than I could imagine", he assumed. "since then I learned that if you do not have enough stock, you'll never know how much you can sell," he concluded looking with satisfaction at the incredible amount of goods that goes underground in the company's headquarter.

We continued our tour.

Jaime saw an item on the floor, bent down to pick it up and put it back at the proper place. He had done with so simplicity and speed. "Now we are already thinking about new ways of arranging the groceries department. At these changes I refer to the supermarkets of the United States," he says. During this tour he took us in addition to the warehouse to the machinery repair station, HR department (with its walls filled out with well-organized blue folders containing documentation on about 3,000 employees), the training auditorium, from the fiscal and audit sector to the doctor's office, and even to the warehouse where the oldest items are stored. "There is good equipment. But the point is that they are a little slow for us. Can you imagine keeping the supermarket full day by day? But we will go forward to make our supermarkets working how it is", he plans about the reutilization of all tools.

Throughout our interview Jaime recounted several striking facts of his history, the episodes that might seem simple but were fundamental to forge the leader of teams which he is today. Among them was the frustration by failing in mathematics in the final year of high school, when he had just passed the college entrance exam. "The teacher disapproved 99% of the class, only one of the students passed. I was so disgusted that I did not want to study that year, "he says, when we ask why he did not want to complete an academic degree. "I learned at work," he says with confidence. Also, throughout our conversation some positive lessons have come to it such as the toolbox he gained from his first job supervisor. The happiness of getting the present made him understand forever that influences can be good or bad, and especially how powerful can be a positive attitude in a young person's life. The great symbols marked the formation of Jaime Andreazza such as the first pair of rubber boots that, as a child he bought with his own money, winning in selling of tangerines at the Pavilions of the National Grape Festival. "The first thing I and my brothers did when we got to buy our first rubber boots was went dancing in a dirt!”, he reminds and laughs. “We were happy with simple things!”, he recalls and adds that today the new generations have access to everything very easy and this sometimes can generate certain difficulties in the formation of an entrepreneur.

Although he did not have the academic diploma, throughout his life Jaime sought knowledge in courses (even abroad) that could meet his technical needs in the area of the administrative management, marketing, finance and people management, together with the real life and coexistence with other people, which became the greatest lessons. "Whenever someone is saying something that interests me I stop and listen very carefully. When possible I put more questions on it. Even when it comes to the aspects of family life.", he confided. Even though he acquired his father's company in partnership with three other brothers and his two sons (Mateus and Diogo) under his supervision now, Jaime says he never sought the professional advice to address the challenges of the family business. "I learned by listening and watching other business groups which the secret is to be professional. When I and my associates sit down at the table to talk, we are four company’s directors. When the meeting is over and we get up from the table for coffee, then we are four brothers again. None interferes with anyone's private life. But as far as the company is concerned, we will always be mutually charged, "he says.

When we are asking about whose of the partners' children, works in the company, Jaime's eyes glowed discreetly when he is speaking of his Diogo and Mateus. "I always said that if they wanted to, they could find themselves in other areas. But I have always taught them to work from an early age. Today they stay here with me." Jaime took the phone and showed a video recorded by Mateus for Coca-Cola partners, thanking him for last year's income. "He does not like to talk like me!", said the father. Although the young man's resourcefulness is excellent. “Recently he traveled overseas to conduct a research on technologies dedicated to the supermarket segment," he revealed. He traveled with my brother Marcos and the commercial manager. This other person started working with us as a packer. Most of my leaders are born that way. We form them within the company, "he says, noting that the team participated in the National Retail Federation (NRF) 2019, the largest retail trade show in the world (also the oldest one) which was held in New York. The 108th edition of the National Retail Federation was held January, 13-14, 2019 at the Jacob K. Javits Convention Center. It was attended by 37 thousand people, 16 thousand retailers, 3,500 companies and 700 exhibitors, involving 99 nationalities from all continents, among them the Andreazza brand representatives.

Throughout the supermarket’s history he like his father also faced the depression (precisely because of the disease of the head of the family Armazém Andreazza. It was the whole story of Jaime's involvement with that time.). "It happened to me around the age of 45.  I felt tired and worn out. But I had already learned the lesson from the experience I have had with my father. At that time he stayed in the bed for 30 days. That's why I started working at the Andreazza warehouse, to help him. Then, when it happened to me, I soon realized that I need to ask for a help. I chose to treat myself. I have a lot of responsibilities which made me lay down, "he said. Finishing our tour, we passed the boxes. "People cannot imagine how much work should be done in order for them to do shopping, and go home with the goods they wanted. It's really a lot of work. "he admitted happily to see everything working at the Kayser supermarket. That's when we asked, "Throughout this process, what is more challenging?" Jaime did not hesitate to respond. "What I most miss - and my biggest challenge - is being able to be closer to the people who works with me.

I would like to have more time to relate to everyone and actually invest in a closer relationship with them. I have a lot in mind that will reciprocate into people's dedication. Like this interview which I'm just giving to you, because we've been friends with your family for so long and  I've seen you along with my children. Otherwise I would not give my time for it. I made that exception also on another occasion upon the request of one official. I gave a lecture to her student group at FTEC. It happens that whenever I need, she helps me. Whenever I asked she gave more than expected and helped out. Then, for her, I overcame my fear and went to a lecture. I think that not being comfortable with public speaking is something that comes from my childhood. You do not know how much I was suffering being called “the rural guy”. It was not easy at school times.", Jaime remembers with a certain melancholy in his eyes and an amused laugh which hard to hide.

So now we proudly present our interview with Jaime Andreazza, the administrative director of the largest supermarket chain in Serra Gaúcha.

NOI: How are things in the most discussed supermarket Andreazza de Arroio do Sal?

Jaime Andreazza: Now, during the summer season, we're doing great! Let's see what it's going to be after summer. Now, in this period, it was already expected that we would over exceed our sales target. But I am waiting to evaluate the entire cycle of a year.

Do you imagine how people would cheer and will be happy to have your brand there?

People asked for a lot to go there, but we did not think it would be so much. On the day of launching was something that caught my attention the most. Around 12 thousand people came when the city has 9 thousand inhabitants. So it was very impressive. We greeted the people there, one by one. We felt like the people needed to have a supermarket like ours there. I was there because usually I personally meet any kind of suppliers and also interested in building the contact with the customers. The management of our company believes in having direct contact with the operation and not being locked inside an office. We, the brothers, are always present at our stores launchings. We're in the store checking what's going on and rapidly reacting on any complaints we may get. Because it is important for the customer to know that we care about them.

Do you think that having a"feeling" of the moment can say something "more" about the business?

Surely. You can feel what the customer wants. Is he happy, or not ... Whether he likes what was done, if he likes the store, if he finds it beautiful, whether our store has enough variety or goods. We collect the feedbacks right here on place. Otherwise, the information would take a long time to arrive.

So you think the prompt response is your secret?

For sure. One of the secrets of business is to be agile. And from other hand never to lack the commodities. When you miss some commodities, you never know where you've stopped selling. When you sell, you can measure it. This I learned very early, even when we only had the warehouse at the Serrano neighborhood. There was a product that we lack every day. It was mayonnaise. After placing the order in two, three days later the shelf was empty. And I was thinking "How could it be?" Then I began to care. Each time I was placing more and more orders, until I found the balance and found out what the actual selling potential of that product was. It was far beyond what I thought. So every time I step into a store and see a hole between products at a shelf,  that's a sign to me that something was happening wrong. We have today a system that shows us the product that did not delivered to the store ... We always need to know why.

What are the top three selling items in the company today?

There are several items. I'll tell you by departments: butcher, fruits and vegetables and grocery store. Not necessarily in that order.

Do you want to open other stores on the coast?

Well we need now to wait at least a year to make the whole cycle of the store in Arroio do Sal and then evaluate our results to understand whether we will continue there.

In other cities of Rio Grande do Sul?

When we feel the need, we are always ready to go!

Have you even thought about expanding to other states of the country?

No, not yet. Our company is big for Caxias do Sul, big for the Serra Gaúcha, but comparing at the national level is small.

But would it be your dream?

Not necessarily. I like to take one step at a time. I am always joking that until 100 stores I can take care of, after that I do not know! (laughs)

Do you have a plan to predict how much time does it take to reach this number of stores?

We do not have that kind of analysis. We go step by step and we  always do the evaluation of the cities. We have already considered Veranópolis, São Marcos, Vacaria, Gramado, Canela, Nova Petrópolis, São Sebastião do Caí, Bom Princípio. We are always looking where an opportunity appears. Where the opportunities arise…

Did you even start training in the United States? They have a lot of this goal question, did you feel it very strong there?

In fact my training was more focused on questions of our family business on people management skills. We also had a lot of technical visits. I have already put many things into practice from what I saw there. In one of these three new stores I'm going to try to introduce things I've learned in the United States. But we have to understand also that  many things  of their culture are not applicable for us. We have to adapt, to test it at each new store whether the clients will accept it or not. You cannot just take what the Americans do there and bring it here.

What for example?

the way to allocate products at the department of fruits and vegetables. I do not know if you've noticed that the stands for them have been changed. And they will be changed again. We take it one step at a time. Things became better placed, more exposed to look more beautiful. We referred to the organizing products and targeting it by light. There I saw stores extremely focused on service, from taking out goods from the basket to packing it for the customers, and others totally aimed at self-service, where you pay by yourself at the machine. I saw mixed stores and with practically 100% self-service. They have both. Here, there is a fever of this pattern called the "atacarejo" (in Portuguese, his original language). We're thinking about to have one shop of this model in Caxias do Sul. In this type of operation the goods become cheaper and there is no service at all. We have to see what our client wants.

Why the option for this policy of "one step at a time” instead of setting bolder goals?

When you take the big step, the risk is also very great. We have already tried different approaches. We had already been opening one store a year, buying five stores at one time, negotiated during three days to take over stores. We've got the key and started to operate ... I was tired of buying a store, talking to the salesman, but at the end of the day and leaving with the key in my pocket, so that the next day we could open it with under our brand. It all depends, right!

When was the exact moment when you realized that you would not be looking for a job at a big company in Caxias do Sul (as was the dream of many teenagers at the time) and that you would be an entrepreneur? When did you get that certainty for the first time in your life?

I worked at Teodosio Randon when my father needed someone to help him at the market. In general, he needed someone to help him do everything. My dad got sick and I had to take over. The store was at the ground floor. At the age of 15 years old ... I was scared. So I had been doing  things and every time was going up to talk to my father, who always was supporting me. My father stayed 30 days in bed. My parents were in need and I helped. Then I began to gain confidence. From then on, I started to grow.

And what about the brothers, what did they do at that time?

They worked outside, had other jobs. Vitor worked at the  Mechanic department of the main bus station at that time, Mauro also, and Marcos worked at Toniolo Busnello.

So you were the first child to leave the job to go to work in the market?

Yes. After our father retired he told us: “Look, you want to buy this business? If not, I am going to sell to someone else!” So my brothers went into business after me. We started the sibling partnership in 1987. In 1985 I got married and I was working with my father still. Me with my brothers decided to buy a business, because until that time I had some savings being employed.

What is it like to work in a third generation family business and succeed? What's the secret to success?

Be professional. You cannot bring "the feelings" inside the company. When we have a meeting  at the company (as we have four directors here which are brothers), there actually are  four directors to discuss the affairs of the company. When the meeting is over, we talk about general matters. We have the functions well divided. Marcos is the Commercial Director, Victor takes care of the Legal department, I take care of staff (HR), marketing and network expansion, and Mauro takes care of administrative, financial and fiscal departments. So we sit down, make the meeting, whoever has to talk will talk. Sometimes "get on fire!" when deserved. Then when we get up, four brothers drink coffee to finish the meeting. Everyone does his part, and in the next week everyone solves the rest that was pending. That's how we work.

I imagine it was not easy to reach that point?

No. We had some disagreements along the way. But then we understood, that was not good. The particular life of each is his private business. Then everyone does what he wants in his life, and that’s it. Now, when we all work inside the  one company, we all have to be aligned. And so with our children. When they enter here they know they are employees. I also talked to them a lot about their  image in the eyes of other employees. Others may think that they will be treated as "owner's children", so they need to give an example. They earn nothing more than any other employee with the same duties, sometimes even less, and have to earn it. If they do not perform, they will not get it.

Do you have any advice that you can give to the family businesses?

No. But I've always been looking for a lot of information on how it works. The rule is: if you are competent, stay, if you are not competent, you have to leave.

Are you looking to read about it, then?

I'm always up to date. It is not so much the question of reading. I talk to people, I watch what is going on around. Like fruits and vegetables department, for example, I have done a very complete work on this part.

Are you looking for advice, then?

Always. I do not miss an opportunity to hear when someone is talking about a subject that interests me. I interact and always seek what I can learn from the experience of other entrepreneurs. I am quite aware that the sentiments of the four company founders are  one, but the sentiments of those who comes from a younger generation may be different. Often they just want the profit. So we have to separate these are things. Another important factor is hierarchy. When we sit down to make decisions, we are only four. Then everyone debates and discusses the topics with his own family.

You are in the second generation of a family business, you are between two generations. Do you believe in professional succession or you think that succession would better be stay within the family?

I think it may be both. We're working in two ways here. We are training our employees and also family members. And we are working with them together predicting both possibilities.

In other words, if anyone wants to leave, he is free to do so?

Yes.

Is this an advice which you could give to other entrepreneurs in our region?

Look, giving advice is pretty complicated thing, right? Everyone has to find his own way. We have many cases of large companies in our region that could not find a successor. In some cases we see 80-year-old gentlemen still at the forefront of business. Is it their fault? I do not know. Were there others willing to take over? We do not know either. So every company needs to find its own balance point and their own way to do it. Family businesses still have a lot of "owner" culture, the one who built up himself from down with many sacrifices and difficulties on the way. Because of it there are still many things which the owner would like to share, to open to others. But I think you have to open up to people step by step, so they can figure out how to do things. My father, for example, when he got sick, did that.

You had also been working in other industries. Metallurgy, transport, all this, while you had been keeping the father's warehouse. Why did you look for opportunities in other segments?

At that time, my brother worked for Randon. And he came and asked “Don’t  you know who has an iron saw? The company needs this service, but there is no equipment for this. They are willing to pay for it.” I said, "Hey, why do not we buy one ourselves?" I left, I went back with a partner who had a saw! (laughs). I allocated him at the basement and we started from there. I was attending the market and networking with people from the metallurgical company Polesso, who needed someone to bring a sand. I started to look around how much a truck cost. I checked everything and realized I could make a good profit. Then I called my older brother and said, "Hey, we have  Chevrolet Monza each, let's sell these cars and  buy a truck!" It was said and it was done. That's what we did! (more laughter). By dealing with sand for a long time, we earned already enough. In the end we already had two truck wagons. And so it was!

Don’t you think that young people lack it a bit now?

I think so. They already start having all things much easier than it was at that time when we had much more needs to cover. We had nothing and needed to work to get things. Not like today, when they have everything on al phone call. The parents support them by monthly payments. I think the biggest mistake of families is they do not prepare the young person for life. They give everything. Whenever a son wants a bike, he got it. He wants sneakers, he got it. He wants a better phone, he got it. He studies. But as long as you do not have the practice and a desire to have things done, it doesn’t make any sense. I am still noticing today, with all the time that my children already have been working by my side, and despite all that they have gone through, the knowledge they have,  engagement and participation in the meetings, I  have to give them still often  " brush stroke". Once in a while I let them break their faces and then I show them - you see? You are going the wrong way, you have to go here, you have to pay attention, this works like this... I teach you to think ahead and understand the consequences of each decision.

Despite all this, you have established the First Job project in the company, which gives young people the opportunity. How has the company been challenged to deal with the new generations?

First we have to train these guys, to motivate them to work and in  a way to make them wanting to grow, to want to be a manager, a supervisor. Our company gives a lot of opportunities. Since the employee enters we have shown this to him, that he has opportunities in all sectors. The one person we trained within our company, as a possible successor, started as a packer. Today this person is going to the United States along with my son Mateus and my brother to research about innovation for the Super Andreazza network.

So you really believe in the young people?

Yes. I remember my story. For a short time I worked at Teodosio Randon (from aged 14 to 15), I remember that there was a good person. I had one bad and one good guy near me. The bad one stole diesel from the trucks, he only was judging me. Imagine me, a "gringo coming from the immigrants village", you have no idea how much I suffered from bullying. And there was the good guy. He taught me things, the things of life, the service. He would say, "Look, today you do it like that." This person one day called me in the storeroom and gave me a toolbox. Imagine my happiness! One day, many years later, this gentleman entered one of our markets. I called him, gathered all the staff around him, and told  this story. I never forgot my happiness with that gift, and what he taught me.

So you realized the importance of a motivating person in the young person's life?

Yes! Sometimes I blame myself for not having more time. I would like to work more with these young people. Teach, show more to them. Whenever I have an opportunity, I talk to them, I explain how things work.

In addition to young people, you also have the programs for seniors and people with disabilities. Why do you have these two projects in the company?

Today for us it is a privilege to work with them. They work well and are very attentive. It is very rewarding! I always encourage other entrepreneurs to do this. And our project is indeed inclusive. We work with them and their families. With the senior staff is also very cool.  When they start working at the company and it seems they are becoming rejuvenated,  reinvigorated.

In 2018 you had a great initiative to introduce the application, which was the biggest success. How do you bring technology to your segment?

This is one of the purposes of our team's trip to the United States. But now it is a  time to consolidate and evaluate this "first step", that first project which is our application. As we are pioneers in this in the region (only multinational networks have something similar), we have to evaluate the action well. But we already have other projects! I just do not want to give an idea to others. We are already being copied enough! (laughs).

What is your biggest challenge as a supermarket owner?

The most challenging for me is dealing with people. To improve the way of teaching them. It's not that we do not train. We have two auditoriums here and qualified teachers. We do train a lot. But I would like to make them more and more capable. I want them to feel like a part of it all. To feel good here. That the experience what we put on our logo: "friends of families". If the employee leaves the company angry, he will not bring his family to buy in our markets, he will speak badly of our brand out there. So we take care of that, even when we dismiss people. We do not let them leave with a bad feeling. It is important to never underestimate people and take care for them. Of course, sometimes we can be wrong, but we are also human beings. However our intention is always to generate a pleasant environment so that people can produce the best out of them. Also when they are leaving, we would like to know what they learned and how we contributed to their formation, whether we collaborated to become a better person. I would like to have more time on all this.

If you were not a supermarket owner, what would you be?

I do not know. I really like what I do! I  am very passionate about my work.

    

Biography
Jaime José Andreazza, Vice-president of Commerce of the Industry Chamber of Caxias do Sul,  was born in Caxias do Sul in 1961 and inherited his entrepreneurial vocation from his Italian ancestors. At the head of the family business, he was president of Sindigêneros Caxias (2004-2007), first president of the Economic Impact Commission of Caxias do Sul and received the Merchant Trophy in 1995. He currently holds the position of director of AGAS (Associação Gaúcha de Supermercados), The Gauchos Association of Supermarkets, 1st Vice-President of Sindigêneros Caxias.

 

Read this content in portuguese:

https://www.revistanoi.com.br/editorias/legado/eu-vejo-oportunidades.html

 

 Interview | Caroline Pierosan - Photos | Josué Ferreira - Translated | Olha Hawrylec