During this year, all around South America, growth has either slowed down or gone into reverse because of the global inflation that causes prices of the region’s raw material to change. The South American region suffers from unemployment and many retailers have had a miserable time. However, Chile which is seen as the “Germany of South America” has demonstrated to be economically balanced among all the other South American countries. With all the natural disasters occurring in Chile such as the tsunami and the earthquakes the country has managed to stay balanced with its budgets, decent roads and punctual trains. The reason for this is the help that the economy is receiving from the international department stores that Chile provides in many South American countries. Chile has the famous Falabella Company, representing them all around the region of South America, this 126-year-old department store chain carries 100,000 people working for them from all around the continent.
The Chilean-peso has fallen by one-third against the dollar since 2013 and even though people should be thinking twice about buying, Falabella still manages to increase its sales from year to year. The Falabella performance has increased with a net profit of 95 billion pesos or 136 million dollars which is 16% more than the previous year and their revenues increased by 13%.
Falabella’s success is spread around six different countries, it runs 101 department stores and 102 supermarkets. It also has around 246 big-box DIY shops and runs around 39 shopping centers. All these acquisitions help the sales run smoothly over the cycle. 
Some ways that Falabellas keep their costumers loyal are by creating a fit between the Falabella department store and a Falabella-owned supermarket, in which a costumer can use their Falabella credit card or draw cash of the Banco Falabella ATMs. The company lends about $5.7 billion to its costumers and keeps them happy with Chile’s cheap finance, due to the fact the Chile offers low interest rates.
In my opinion the success of Falabella comes from not rushing into branching out. The company has demonstrated how it slowly has branched into other countries over the years and they always combine branches with local firms to cut costs and have better providers:
“With all the techniques that Falabella applies to its growing company it will keep expanding and staying as on of the largest South American department store for years.”
