The history of EmbargosALoBestia is that of a large commercial clickbait that emerged in an industrial warehouse without air conditioning in Alhama de Murcia five years ago and that has managed to position itself in the low-cost home product segment with 25 stores.
Its CEO, Pablo Franco explains it very simply: “we wanted to be very disruptive in our model, starting with the commercial name”. This company, which started with three employees and now has a staff of 240, arose to specialize in products at very low prices for the home from liquidations and excess stock, “but in no case do they come from damaged or second-hand.” .
After its opening, offering the products acquired somewhat blindly in liquidations of new products that traveled in containers that were opened in the customs of the ports, they verified that their model generated a lot of recurrence among their clients, “because we did not advertise what we sold because we couldn’t even know it ourselves.
After perfecting its processes, the company has structured an offer with a third part coming from these liquidations or from stocks and around another 70% of its own brand obtained from national or European suppliers (50%) and from imports from the Asian market ( 20-25%). With this recipe, they already have 25 physical points of sale in Murcia, Andalusia, the Valencian Community, and Castilla-La Mancha, as well as a web page that generates 20% of sales that include everything from sofas or bedrooms, to small and large household appliances, going through decoration or garden furniture.
Omnichannel bet
The head of the chain acknowledges that “when we arrive in a new city, what grows the most at first is internet sales, thanks to the fact that we work a lot on omnichannel with services such as click&collect. Starting in September we will change for a third our website and we will start working with the Brazilian technology Vtex, very focused on this complementarity between physical and online sales”.
“We are very clear that our future involves growth through physical stores, even though the web is the store that concentrates the highest sales,” explains the head of this firm, which last year obtained 30 million euros net after registering sales of 36 million. “We believe that the low cost home sector in Spain is not very well worked and the liquidation sector does not exist. We could consider that our competition is Ikea, Conforama, Leroy Merlin or MediaMarkt, but they are not strictly focused on the low-cost. We are the Lidl or the home sector and that is our position to continue growing, “explains Franco.
And this growth seeks to consolidate its position in a context of economic crisis through a five-year plan that provides for the opening of 90 establishments that will allow them to reach sales of 150 million euros. “Unfortunately,” Franco clarifies, “we have verified during the pandemic that new customers do not stop arriving at our stores from areas with greater purchasing power, that middle class that has become impoverished but still needs to replace furniture or electrical appliances. , we have users with higher incomes who need to renew the furniture of second homes or homes they have for rent at a good price”.
In this five-year history of EmbargosALoBestia, in addition to the customer profile, the composition of an offer has also evolved where, “although the attractiveness of liquidation and excess stock continue to be our core, the growth in sales volume has meant that 70% of our product is already recurring”, explains its founder. “However, 30% of our portfolio is always changing and brings surprises.”
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