History of Falabella, a giant commercial empire in Latin America

Falabella is a multinational company that operates in the world of trade. It is based in Chile and has been in operation for over a century.
Tableta y móvil muestran productos electrónicos en la web de Falabella.com; entorno digital moderno y logos de Sodimac, Tottus, Linio. Texto visible en tienda física antigua.

Latin America has eCommerces that have grown over the years and they are not just for buying and selling products. An example of this is Falabella, a company that has managed to be considered one of the largest and most consolidated in the region and that is dedicated to different areas of business such as department stores, home conditioning and construction, commercial financing (Customer Relationship Management), banking, travel and insurance.

With more than 130 years in the market, Falabella is one of the largest companies in Latin America, especially in the southern region. Currently they have a presence in seven countries: Chile, Colombia, Argentina, Peru, Uruguay, Brazil and Mexico.

Falabella history: more than 130 years selling

The large department store dates back to 1889 in Chile, where Salvatore Falabella opened a tailor shop that Alberto Solari joined in 1937, helping the brand make a big impact in the world of clothing and incorporating new products and points of sale. Twenty years after its founding, they launched CMR Falabella (Falabella Multi-Rotating Credit), known as their own credit card, which they used to offer their customers a more convenient payment system.

In the 90s the company was already known for its different advances and innovations in the commercial world, so it was not difficult for them to begin their expansion outside of Chilean borders. It was then that they opened their doors in Argentina and then headed to Peru. By 1997, they created Falabella Travel and Insurance and then in 2003 merged with Sodimac S.A., which allowed them to continue with international expansion. To complete their empire in 2018, Falabella bought Linio, another of the big eCommerce companies in Latin America.

The origin of Falabella online

Clearly, a multinational company like Falabella could not stay out of the online world, so like other companies, it has its own website, launched for the first time in Chile in 1999. It was completely renovated and relaunched in 2021 in order to offer greater efficiency to its customers when accessing its offer of more than 8 million products.

“The new falabella.com is the pillar of Falabella’s digital proposal, which is complemented by our offer of more than 500 stores, 46 shopping centers, payment alternatives, financing and loyalty program, allowing us to be increasingly present in the daily lives of our customers with solutions that adapt to their needs. Our retailers will focus on having the best offer in the market both in the physical and digital world, and our marketplace opens the door for sellers of multiple categories to expand that offer,” explains Falabella’s general manager, Gaston Bottazzini, in a company statement.

Falabella breaks records in 2021

Just because the multinational has been in the world of trade for a century does not mean it is not still growing. In 2021 alone, it achieved $772 million in net profit, the highest amount the company has recorded since its founding. In the last quarter of that same year, consolidated sales of $4.077 million were also recorded.

Given the positive results of last year, the Chilean company decided to allocate $711 million in 2022 for advances in technology, logistics and its physical and digital expansions.

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