-- FASA Will Operate Farmalider Stores and Will Accept and Promote Use of
the PRESTO Card as Means of Payment in All of its Pharmacy Stores
throughout Chile
SANTIAGO, Chile, Dec. 15 /PRNewswire-FirstCall/ -- D&S (NYSE: DYS),
Chile's largest supermarket chain, and Farmacias Ahumada S.A. (FASA), the
largest pharmacy chain in Latin America, entered into a strategic alliance
by which Farmalider stores will be operated by FASA under its own trade
name and the PRESTO credit card, owned by D&S, will be used as means of
payment in all FASA stores throughout the country.
The agreement also considers the presence of FASA stores in all LIDER
supermarkets and hypermarkets that D&S may open in the future.
According to D&S's Chief Executive Officer, Enrique Ostale, this
alliance reflects D&S's strategy, which is centered on growth and
productivity, allowing the Company to strengthen its focus on the food
retail, financial services and real estate businesses. "FASA is a
specialist in the pharmaceutical business in the same way that LIDER is
specialized in food retail and PRESTO in financial services. When we are
100% focused on our core business, we are able to maximize profitability.
This is why we are certain that this strategic alliance will be of great
benefit both to the participant companies as well as for consumers, making
their lives easier by providing access to a broad, high-quality product
assortment, all in one place."
FASA will operate the 70 Farmalider stores currently open to customers.
According to the terms of this strategic alliance, all Farmalider
associates should keep their jobs.
The use of PRESTO, with 1.6 million cardholders in good standing, will
be promoted by the pharmacy chain throughout the country.
Elias Ayub, General Manager of D&S Financial Services pointed out that
this alliance will lead to significant increases in the use of the card.
"For PRESTO -- which showed a 34% increase in revenues during the period
January- September 2006 -- having such a prominent strategic partner
demonstrates the sound, sustained growth of this business." Ayub added that
this alliance follows the same model implemented by D&S Financial Services
for the development of new businesses such as travel, insurance,
telecommunications, which consists of entering into agreements with
specialists in those business areas while keeping the focus of LIDER and
PRESTO on the distribution of products and services.
D&S executives are pleased with the terms of this alliance and are
confident that it will be of mutual benefit to both companies. Larrain Vial
was the financial consultant on D&S's side.
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