About Cencosud

Cencosud S.A. operates as a multi-brand retailer in South America. The company operates through various formats, including supermarkets, home improvement stores, shopping centers and department stores. It has operations in Chile, Argentina, Brazil, Colombia and Peru. As a complement to its core retailing business, the company engages across the region in the commercial real estate development business, particularly in Chile, Argentina, Colombia and Peru, with 53 shopping malls representing 778,848 square meters of gross leasable area as of December 31, 2016, and it also offers private label credit cards, consumer loans and limited financial services to its retail customers. For the year ended December 31, 2016, the company had 1,171 stores and shopping centers with an aggregate of 4,411,922 square meters of selling space. Segments The company is organized in six business segments: Supermarkets, Home Improvement Stores, Department Stores, Shopping Centers and Financial Services, plus complementary activities described as ‘Other’. Supermarkets segment As of December 31, 2016, this segment operated 933 supermarkets throughout Chile, Argentina, Brazil, Peru and Colombia, selling various name brand and private label products. As of December 31, 2016, the company operated a total of 245 supermarkets in Chile under the Santa Isabel and Jumbo brands. The company’s Jumbo hypermarkets are primarily oriented towards middle and upper-middle income consumers and are designed to provide a ‘one-stop’ shopping experience by offering a selection of products. The company tailors the product mix of each Jumbo hypermarket according to the preferences of consumers of each specific community. The company operates its supermarkets in Chile mainly under its Santa Isabel brand, which is primarily aimed at the low- to middle-income segment of the Chilean population. The company’s Santa Isabel stores sell variousfood products and general merchandise items similar to that offered by its Jumbo hypermarkets; however, Santa Isabel stores also offer higher quality merchandise, and convenient locations. In addition, certain Santa Isabel stores feature higher margin specialty departments, such as prepared foods, fresh seafood and bakery departments. Santa Isabel also offers products, such as alcohol, cosmetics, household and other non-food items. The company uses its Jumbo brand to open supermarkets aimed at a middle and upper-middle income consumers. These stores mainly market food items with a special focus on fresh fruits and vegetables while offering an array of ready-made foods. Argentina As of December 31, 2016, the company operated 283 supermarkets under Jumbo, Disco and Super Vea brands in Argentina, which together had 524,821 square meters of total selling space. The company’s Jumbo hypermarkets and supermarkets are its major stores in Argentina and have selling areas ranging approximately 300 square meters to 12,223 square meters. As in Chile and Colombia, the target market of the company’s Jumbo hypermarkets in Argentina is primarily the middle to upper-middle income segment of the Argentine population. Its Jumbo hypermarkets are open 14 to 15 hours per day, depending on location, and have flexible closing hours to accommodate the requirements of the local community. As in Chile, the company’s Jumbo hypermarkets in Argentina offer a range of food and non-food items, including fresh fruits and vegetables, baked goods, fresh meats and other grocery items. Jumbo also operates a virtual Supermarket (www.jumbo.com.ar) that allows its customers to place orders over the Internet for home delivery. The company’s supermarkets in Argentina operate under the Disco and Vea brands. Disco also operates a virtual supermarket (Disco Virtual), which allows customers to place orders by telephone and over the Internet for home delivery in the Buenos Aires and Córdoba metropolitan areas. The target market of the company’s Disco stores is primarily the middle- and high-income segment of the Argentine population. Disco has a service-oriented format and offers various products and services to its customers. This format caters to more affluent customers who are willing to pay a premium for higher quality products, a more personalized service and a broader product assortment. The company also operates price-oriented stores under the Vea brand, which targets primarily the low- and middle-income segment of the Argentine population. Vea stores are primarily concentrated in the Cuyo (San Juan and Mendoza) and Northwest (Tucumán, Salta, Catamarca and Santiago del Estero) regions of Argentina and offer a lower level of services with a higher proportion of secondary brands and private labels. Disco offers a range of food and non-food items, including fresh fruits and vegetables, baked goods, fresh meats, cleaning, health and beauty products and other grocery and supermarket items. In addition to general food and non-food items, Vea also sells various home appliances, including televisions and refrigerators, as well as other household consumer products. Brazil As of December 31, 2016, the company operated 211 stores in Brazil that together had 594,855 square meters of total selling space. In addition to these, the company also operates 138 locations in numerous formats, such as Eletro-show stores, pharmacies, gas station and delicatessen under its GBarbosa, Bretas and Perini brands in Brazil. As of December 31, 2016, the company operated 211 stores in Brazil that together had 594,855 square meters of total selling space. In addition to these, the company also operates 138 locations in numerous formats, such as Eletro-show stores, pharmacies, gas station and delicatessen under its GBarbosa, Bretas and Perini brands in Brazil. GBarbosa: The company’s GBarbosa supermarkets represent its major store format in Brazil. Its GBarbosa supermarkets have selling areas ranging from 400 to 8,000 square meters. GBarbosa supermarkets sell products, such as fresh fruit and vegetables, meat, poultry, dairy products, alcoholic beverages, textiles, cosmetics and cleaning products, in addition to more gourmet items, such as delicatessen products, fresh fish and bakery items. The company’s GBarbosa supermarkets also offer a range of non-food products, such as electronics, home appliances and textiles, which represent an important share of its sales. Mercantil Rodrigues: As of December 31, 2014, the company also owned and operated Mercantil Rodrigues cash and carry in Brazil. Mercantil Rodrigues offer a range of food items, including fresh fruits and vegetables, baked goods, fresh meats and other grocery items. Super Familia: The company owns 100% of the outstanding shares of Super Família Comercial de Alimentos Ltda., operator of the Super Familia supermarket chain in Brazil, in the city of Fortaleza, with a total sales area of 7,000 square meters, and two distribution centers. In 2011, the company rebranded the Super Familia stores into the GBarbosa brand. Perini: The company owns 100% of the outstanding shares of Perini Comercial do Alimento Ltda., operator of the four-store chain of Perini supermarkets in the city of Salvador da Bahia in Brazil. In addition to the four Perini stores in the city of Salvador da Bahia, the company also acquired four additional points of sales inside shopping centers, with a total sales area of 4,900 square meters, and two distribution centers. In 2012, the company opened a new Perini store in the city of Recife inside the Riomar shopping center and closed one distribution center. The company operates five stores that are serviced by a single distribution center. Bretas: The company owns 100% of the outstanding shares of Irmaos Bretas Filhos e Cía. Ltda., operator of the 63-store chain of Bretas supermarkets in the state of Minas Gerais in Brazil. In addition to the 63 Bretas stores, the company also acquired 10 additional gas stations, and two distribution centers. Cardoso: The company owns Cardoso, a three-store supermarket chain in the state of Bahia. The company has converted the acquired stores to the GBarbosa format and is operating them under that brand. Prezunic: Prezunic is the major supermarket chain in Rio de Janeiro with 31 stores. Peru The company owns 100% of the shares of GSW S.A., operating under the brand name Wong in Peru. As of December 31, 2016, the company operated 91 Wong and Metro hypermarkets and supermarkets in Peru, which together had 272,001 square meters of total retail selling space. As of December 31, 2016, the company operated supermarkets and hypermarkets under its Metro and Wong brands in Peru. Metro stores carry its line of products and brands, various price points. The target market of the company’s Metro stores is primarily the middle- and low-income segment of the Peruvian population. The company’s Wong stores carry its line of products and brands, at various price points. In addition, some Wong stores contain separate specialty retail facilities operated by third parties. The target market of the company’s Wong stores is primarily the middle- and high-income segment of the Peruvian population. Colombia As of December 31, 2016 the hypermarkets the company operated in Colombia had an average selling space of 4,187 square meters. These stores carry an assortment of goods at various price points. As in the other countries where the company operates, Jumbo hypermarkets are primarily targeted at the upper- to middle-income segment of the population offering a range of imported products. As in Peru its Metro hypermarkets target the mid to lower income segment of the population. As in Chile and Argentina, the target market of the company’s Jumbo hypermarkets in Colombia is primarily the middle to upper-middle income segment of the Colombian population. In addition to its Jumbo operations in Colombia, the company also operates hypermarkets and supermarkets under its Metro brand. These hypermarkets have a focus on the middle-low income segment of the population. These stores are usually open 14 to 15 hours a day, depending on location and have flexible closing hours to accommodate the needs of the local community. Convenience stores: The company’s 19 convenience stores in Colombia operate under the Metro brand. These locations are aimed at a consumer that values proximity to a ‘one-stop shop’ location. These supermarkets offer a limited variety of products due to the size of the locations. Omnichannel: The company’s omnichannel strategy includes Web sales of non-food products under the Jumbo brand, and home delivery of food products for both Jumbo and Metro. The company launched Web sales of food products in April 2017. Home Improvement Stores segment This segment sells various building and other materials, including name brand and private label products. As of December 31, 2016, the company had 35 Easy home improvement stores and 325,315 square meters of home improvement store selling space in Chile and 51 Easy and Blaisten home improvement stores and 391,546 square meters of home improvement store selling space in Argentina. As of December 31, 2016, the company has 10 Easy home improvement stores and 82,320 square meters of selling space in Colombia. As of December 31, 2016, the company operated 96 Easy home improvement stores in Argentina, Chile and Colombia dedicated to home improvement, hobbies and construction. Chile: In Chile, the company operates its home improvement store business through 35 Easy home improvement stores. The company’s Easy home improvement stores are oriented toward three groups of consumers, such as professional construction contractors and home improvement professionals, people interested in ‘do-it-yourself’ projects and hobby enthusiasts. Each store is designed to provide customers with a ‘one-stop’ shopping experience for home improvement needs. The company’s Easy home improvement stores offer various home improvement items, including hardware, tools, construction and plumbing materials, electrical products, sporting goods, gardening supplies and other household wares. To complement its products and enhance service, each of the company’s Easy home improvement stores also provides for free, or at a nominal charge, technical advice, home delivery, recommended contractors or builders, and cutting of wood and steel. Argentina: In Argentina, the company operates its home improvement store business through 51 Easy and Blaisten home improvement stores, which had 391,546 square meters of total selling space as of December 31, 2016. As of December 31, 2016, the company’s Easy and Blaisten home improvement stores in Argentina have an average of 7,677 square meters of selling space. The company’s Easy home improvement stores in Argentina offer various products, including flooring, paints, bath and kitchen materials; home, furniture, garden and hobby materials; hardware, electrical and plumbing materials, and building and wholesale construction materials. Colombia As of December 31, 2016, the company operated 10 Easy home improvement stores. Its Easy home improvement stores in Colombia offer various products, including flooring, paints, bath and kitchen materials; home, furniture, garden and hobby materials; hardware, electrical and plumbing materials; building and wholesale construction materials and agricultural products. Department Stores segment As of December 31, 2016, this segment operated 79 department stores in Chile under the Paris and Johnson brands with 377,288 square meters of total selling space and 10 Paris stores in Peru with selling space of 55,333 square meters. The company’s Paris stores sell various merchandises, such as apparel, home furnishings, electronics and sporting goods, including name brand and private label products. The company’s Paris department stores carry various products, including clothing, accessories and cosmetics, home décor, electronic and household appliances, sporting goods, and footwear. The company’s Paris department stores carry private label products under the brands Opposite, Alaniz, Tribu, Attimo, Aussie, Rainforest and Greenfield. Johnson carries the brands Suburbia, Muv, Fes and Yoko, among others. Peru The company’s Paris department stores operations in Peru have an average selling area of 5,533 square meters. Shopping Centers segment This segment operates shopping centers in Latin America with operations in Chile, Argentina, Peru and Colombia. The company is the major operator of shopping centers in Argentina and the second in Chile in terms of total area for lease. The company had a total leasable area to third parties of 778,848 square meters as of December 31, 2016. The company is owner and operator of 25 shopping centers in Chile, 22 in Argentina, 4 in Peru and 2 in Colombia (the majority stake in two shopping centers in Colombia). Within the shopping center business, the company operates various formats. Mega Center: Shopping Centers over 100,000 square meters of gross leasable area (GLA), containing mixed-use space, anchor stores, satellite shops, medical centers, offices and hotels. Regional: Shopping Centers approximately 100,000 square meters of GLA with impact on multiple geographic areas, anchors, satellites and medical centers Neighborhood: Shopping Malls with up 70,000 square meters of GLA with areas of influence in the surrounding communities, with anchors, satellites and in some cases medical centers. Factory: Shopping Centers for discount brands. Power Centers: Centers of approximately 35,000 square meters of GLA, including a maximum of two Anchor stores and a small number of local satellite stores. Strip Centers: Centers with approximately 10,000 square meters of GLA with one anchor store with a maximum of 5,000 square meters, plus an additional satellite store. The shopping centers are located throughout Chile, having 9 shopping centers located in Santiago and 16 other regions. Additionally the company operates a mega center in Santiago, 1 regional shopping centers, 8 neighborhood shopping centers in Santiago and the rest of the country under the brand Portal (La Dehesa, La Florida, Nuñoa and La Reina, Bellotto, Rancagua, Talcahuano, Temuco, Osorno) and 15 Power Center. Argentina In Argentina, the company owns and operates five formats, such as regional, neighborhood, factory, power centers and strip center. Unicenter, based in Buenos Aires, is the main regional shopping center in the country. It also operates 11 neighborhood shopping centers under the brand Portal, three factory, six power centers and one strip centers. Each of its shopping centers in Argentina has a Jumbo hypermarket or a Disco or Vea supermarket, and all except Unicenter have an Easy home improvement store. Peru In Peru, the company owns and operates four malls, with a GLA of 123,144 square meters with 90.5% occupancy, a regional shopping center called Plaza Lima Sur located in Lima, a neighborhood mall in the city of Arequipa, called Arequipa Center and two Strip Centers in Lima. Colombia In Colombia, Cencosud has a majority stake in two shopping centers, El Limonar Shopping Center in the city of Cali with 159 stores and Shopping Center Santa Ana with 48 stores in the city of Bogotá, altogether totaling 43,184 square meters of GLA with 36.4% of occupancy. Financial Services segment Through this segment, the company offers ‘Jumbo Más’ credit card to facilitate in-store purchases in Chile, Argentina, Brazil, Colombia and Peru. The company also owns Banco Paris, a specialty retail consumer bank in Chile, which provides mortgage loans. In 2010, the company launched its own private label credit card in Peru and it is expanding its offerings of financial services. Chile Credit Cards: In 2014, the company entered into the Joint Venture Framework Agreement with Scotiabank to develop, on a joint basis, the retail finance business in Chile. In 2015, the company implemented the agreement and since then, it operates its financial services division in Chile through a joint venture with Scotiabank, under which they operate its Cencosud Credit Card, a major private label credit card in the country. The company granted Scotiabank the exclusive right to issue and operate the Cencosud Credit Card within its stores in Chile, as well the exclusive right, within Cencosud stores in Chile, to offer consumer loans, purchase financing and insurance on products. Insurance Brokerage: The company entered into the insurance business to complement its credit card offerings, offering extended warranties for certain of the electronic products sold at its stores. The company also offers other attractive insurance plans to its existing retail customers. The company’s insurance activities focus on the sale of life, medical, unemployment, home and car insurance, in simple formats and at accessible rates focusing on underserved socio-economic segments. Its insurance products are sold through its distribution channels and are supported by telemarketing and personalized marketing to customers in Paris and Jumbo stores. Argentina Credit cards: In Argentina, the company operates a credit card business for each of its retail brands. The company entered the financial services and insurance markets in Argentina through the launch of its ‘Tarjeta Más’. As of December 31, 2016, the company had issued 1.5 million active credit cards. Insurance brokerage: The company entered into the insurance business to complement its credit card offerings, offers extended warranties for certain of the electronic products sold at its stores and to offer other insurance plans to its existing retail customers. In Argentina, the company offers insurance brokerage in various areas, such as personal coverage, life insurance, homeowners and renters insurance, auto insurance, fraud insurance, health insurance, unemployment insurance, extended warranty coverage, pet insurance and others. The products are sold in the company’s own retail chains and are also available through telemarketing through its call center. Brazil In Brazil, the company operates its financial services through a joint venture with Brazil’s Banco Bradesco, under which they operate its Credi-Hiper card, a major private label credit cards in the northern region of Brazil. In 2011, the company also granted Banco Bradesco the exclusive right to issue and operates its Cencosud Card (Cartão Cencosud) within its stores in Brazil, consumer loans, purchase financing and insurance products. Colombia In Colombia, the company operates its financial services through a joint venture with Colombia’s Banco Colpatria ‘Colpatria’. Under this agreement, Colpatria is entitled to market private label and cobranded cards in all of Colombia. Private label cards are only accepted in Cencosud Colombia stores while those that are co-branded are internationally accepted. Pursuant to the agreement, Colpatria is given selling space in all of the company’s stores to market its financial services to store costumers. Promotional and marketing efforts for this joint venture are carried out by both parties. Peru The company aims to provide financial solutions to its customers to make its credit cards the primary form of payment used in its supermarkets and department stores in Peru. In 2011, the company launched its own private label credit card in Peru and it is expanding its offerings of financial services. The credit cards are operated through the company’s supermarkets in Peru. The company’s financial services segment also includes insurance brokerage services in Argentina, Chile, Brazil and Peru. Cencosud has a total of 626 thousand active credit cards in Peru as of December 2016. In addition to the company’s private label cards, Cencosud offers Visa and Mastercard credit cards. Other segment In this segment, the company includes the results of its Chile-based Aventura entertainment centers, which offer families the ability to engage in entertainment activities, such as electronic games, bowling and birthday parties; its frequent purchaser loyalty programs, which provide discounts and other promotions for its customers; and its corporate back-office, treasury and other operations. Electronic stores As of December 31, 2016, the company also operated 77 Eletro-show electronic goods stores in the state of Sergipe in Brazil, through which it sells non-food items. The company’s Eletro-show stores are operated in small cities where the opening of a traditional store is not viable. This original and cheap format of store contributes to the enhancement of the GBarbosa brand in cities where it does not have other GBarbosa stores. The company’s Eletro-show stores consist of small show rooms with approximately a dozen products on display plus an online catalogue accessible at the store through in-store computers. Eletro-show stores have an average selling space per store of approximately 100 square meters. The main target market is low- and middle-income classes of consumers, who do not have access to Internet at home, are not used to making virtual purchases, and do not reside near one of the company’s traditional stores. The company only sells non-food products in the kiosk. Pharmacies The company operated 49 pharmacies in Brazil under the GBarbosa brand as of December 31, 2016, which are located inside or adjacent to its GBarbosa supermarkets. As of December 31, 2015, the company operated 47 pharmacies in Peru under the Punto Farma Wong and Punta Farma Metro brands, which are located inside or adjacent to its Wong and Metro supermarkets. As of December 31, 2014, the company operated 39 pharmacies in Colombia under the FarmaSanitas brand, which are located inside or adjacent to its supermarkets acquired from Carrefour in Colombia. Dispositions In February 2016, the company announced the sale of 47 pharmacies in Peru to Mifarma. These pharmacies operated inside its Wong and Metro supermarket stores. The deal included the transfer of assets and leasing of the stores for a period of 10 years starting in March 2016. Gas stations The company operates 12 gas stations in Brazil, under the Bretas brand, which are located inside or adjacent to its Bretas supermarkets. The company also operates 40 gas stations in Colombia, under the Terpel, Texaco, Chevron and Biomax brands, majority of which are located inside or adjacent to its supermarkets in Colombia. Entertainment centers In Chile and Argentina, the company operates seven family entertainment centers under the Aventura brand. The company’s Aventura entertainment centers offer arcade games, mechanical games, bowling lines, 3D games and even an indoor roller coaster in its Aventura center at Florida Center in Santiago. Loyalty programs The company’s loyalty programs allow it to develop customer consumption databases, which enable it to improve its merchandise selection and to target its marketing efforts. Further, its loyalty programs allow it to improve customer retention by improving its understanding of the buying patterns and preferences of its customers. Chile: The company offers its Puntos Cencosud loyalty programs in Chile. As of December 31, 2016, the company had approximately three million active loyalty members in Chile, and as of the same date, 72.7% of its sales in Chile came from loyalty club members. Argentina: In Argentina, the company also offers its Jumbo Más and Vea Ahorro loyalty programs. As of December 31, 2016, the company had approximately two million loyalty club members in Argentina and, as of the same date, 64.5% of its supermarket sales in Argentina came from loyalty club members. Colombia: The company’s loyalty program in Colombia manages loyalty and incentives programs through a system that rewards customers by giving them points for their purchases in any of its stores that later could be exchanged for other products. At the same time, it allows it to administer a database for marketing campaigns directed to specific segments. Brazil: In Brazil, the company launched its loyalty program in November 2015 through an alliance with Dotz in its Prezunic stores. Retail Consumer Banking Banco Paris The company owns Banco Paris, a specialty retail consumer bank in Chile. In 2015, Banco Paris’ lending activities shifted to focus primarily on residential mortgage loans. As of December 28, 2016, the Bank and Financial Institutions Superintendency (SBIF) authorized Scotiabank Chile to acquire Banco Paris’ assets and liabilities, transferring them to Scotiabank starting from January 1, 2017. As of December 31, 2016, Banco Paris had 12 time deposits and 568 mortgage loans outstanding, all of which were transferred to Scotiabank Chile as of the same date. Banco Cencosud In 2011, the company established Banco Cencosud in Peru and in 2012 it received the operation license from the SBS, and started operations in 2012 through its Cencosud credit card. Banco Cencosud is regulated by the banking, insurance and pensions superintendence of Peru (Superintendencia de Bancos, Seguros y Pensiones). Private Label Business Private label are brands owned by retailers where the products are sold exclusively in their own stores. The company carries its own private label program in both its food-retail and non-food-retail businesses, which allows it to increase the product offering using its own portfolio of brands in addition to national and international brands. Department Stores The company operates one 77,000 square meter distribution center located in Santiago that services all its Paris department stores in Chile. Additionally, there are 16,000 square meters of rented space for temporary overflow, home delivery logistics and reclassifications. For the Johnson department store chain, the company operates a 21,175 square meter rented distribution center located in Santiago. Centralized distribution accounts for all sales. The distribution is made by third-party contractors. Home delivery operations are shared nationwide with Paris delivery routes and fleet. Home improvement Stores Chile The company’s 71,000 square meters distribution center is located in Santiago. Argentina The company operates four distribution centers located in Buenos Aires for its Easy and Blaisten operations, totaling 80,000 square meters. Strategy The company’s strategy is to develop a portfolio of private brands shared across all countries and business units to achieve scale. Intellectual Property The principal trade names and service marks used in the company’s business are Jumbo, Easy, Santa Isabel, Disco, Vea, Paris, Johnson, Puntos Cencosud, Wong, Metro, GBarbosa, Bretas and Prezunic among others, and their respective logos, covering all major South American markets. Environmental Regulations and Compliance Chile The company and all of its subsidiaries with operations in Chile are subject to the Ley de Protección al Consumidor. Compliance with the Ley de Protección al Consumidor is enforced by the Servicio Nacional del Consumidor (the National Consumer Service). The company’s supermarkets are subject to inspection by the corresponding Secretaría Regional Ministerial de Salud (the Regional Sanitary Authority), which inspects supermarkets on a regular basis and takes samples for analysis. The company’s supermarkets are also subject to inspection by the Servicio Agrícola y Ganadero (the Agricultural and Livestock Service). Banco Paris and CAT are under the supervision of the Superintendencia de Bancos e Instituciones Financieras, and Paris Corredores de Seguros Limitada is under the supervision of the Superintendencia de Valores y Seguros (the Chilean Securities and Insurance Commission). Additionally, Banco Paris is subject to the Ley General de Bancos (the General Banking Law) and its regulations, and is inspected by the SBIF at least once a year. The company is required to obtain a series of permits and authorizations to operate its shopping centers, which include the approval of the corresponding Dirección de Obras Municipales (Municipal Works Bureau), among others. Argentina The company and all of its subsidiaries with operations in Argentina are subject to the Consumer Protection Law. The company’s supermarkets are subject to inspection by national, provincial and municipal authorities, including the Servicio Nacional de Sanidad y Calidad Agroalimentaria, Administración Nacional de Medicamentos, Alimentos y Tecnología Medica; and the Secretaría de Comercio Interior. The company’s credit card operations are subject to the Credit Card Law and its regulations, enforced by the Secretaría de Comercio Interior. The company is also subject to regulations issued by the Central Bank of Argentina. Peru The company’s subsidiaries with operations in Peru are subject to the Antitrust Law and the Consumer Protection Law. Compliance with these laws is enforced by the Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual, the Peruvian public antitrust, and consumer protection agency. The company’s supermarkets are subject to inspection by the Dirección General de Salud (the General Health Office), a governmental office of the Health Ministry, which verifies the quality of the company’s products. Concessionaires that operate pharmacies within some of the company’s supermarkets are also subject to licensing and inspection by the Dirección Regional de Medicamentos, Insumos y Drogas. Colombia In Colombia, the company is subject to laws that regulate competition and consumer protection. These laws include the Ley de Protección al Consumidor (Consumer Protection Law), which is enforced by the Superintendencia de Industria y Comercio (Superintendency of Industry and Commerce). Pharmacies Pharmacies owned or operated by the company are subject to the control and monitoring of the Superintendencia Nacional de Salud through the Instituto Nacional de Vigilancia de Medicamentos y Alimentos and city health authorities. Competition The company faces major competition from Carrefour, Wal-Mart, Falabella, Bompreço, Guanabara, and Mundial. History Cencosud S.A. was founded in 1960. The company was incorporated in 1978.