Alejandro González appeared on Diálogos de El Mostrador. In a candid and down-to-earth conversation, the executive reflected on Falabella’s change in direction, his leadership style, and how he navigated a perfect storm: board divisions, loss of investment grade, and the company in the red.
Amid the greatest challenges in Falabella’s recent history, Alejandro González took over as CEO of the group—first on an interim basis, then confirmed—with the mission of stabilizing a company hit by the pandemic, social unrest, internal conflicts, and an unprecedented stock market punishment.
Invited to the latest episode of Diálogos de El Mostrador, González spoke about leadership, resilience, and how an entrepreneurial spirit shaped the recovery of the retail giant.
“I grabbed the ball and ran,” he summarized, referring to the moment he had to take the helm.
His formula: return to the essentials, get the house in order, and focus on what Falabella has always done well. “At one point we wanted to be many things, but today we remember what we’re good at,” he said, referring to the decision to refocus the business on its core: retail, shopping centers, and financial services.
The Financial Storm
One of the most difficult moments González faced was Falabella’s loss of investment grade. “When you lose investment grade, your future debt becomes much more expensive. Not the debt you have today, but what’s coming. That’s why we prepared: when our rating was downgraded, we were sitting on a billion dollars in cash,” he explained.
That foresight was key to avoiding a bigger blow. His approach, he said, was to maintain discipline: “I’m going to focus on what I can control. I’ll make sure the numbers are consistent, expenses are as low as possible, and capital allocation is much more rational. That I can control.”
The crisis, he added, was also a test of leadership. “Losing investment grade was a very tough moment, especially for me, because I had already experienced something similar at Endesa. We prepared a solid financial plan, but the agencies didn’t think we’d be able to deliver. Later, through our actions, we proved we could.”
Two years later, Falabella is close to regaining its credit rating—a milestone González attributes to a combination of austerity, focus, and trust in internal talent.
The executive also emphasized the importance of balanced leadership: “You have to be gentle with people, but firm with facts and numbers.”
He also recalled lessons from his mentors—like Juan Benavides—and the value of maintaining a culture based on entrepreneurship, austerity, and customer service.
“Falabella has been my home for nearly two decades,” he stated. A phrase that sums up not only his personal connection to the company, but also the sense of belonging he has sought to restore in a group that, after a difficult period, is once again showing clear signs of recovery.
You can read the full article on El Mostrador here.
