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Brazil's GPA Launches New Neighbourhood Supermarket Format

Published on Jun 18 2018 10:09 AM in Retail tagged: Brazil / Pao de Acucar / GPA / Extra / Assaí / Compre Bem

Brazil's GPA Launches New Neighbourhood Supermarket Format

Brazilian retailer GPA has launched a new 'neighbourhood' supermarket banner, for customers seeking more convenient shopping options.

The first Compre Bem stores will open in the state of São Paulo in the second half of 2018, following the conversion of around 20 Extra Supermercado stores.

The location of the stores will be largely suburban, in working class neighbourhoods.

The retailer sees potential to convert of at least half of its 187 Extra Supermercado outlets.

New Management Structure

Recently, GPA created an autonomous management structure, uniting the best of the experience of two of its businesses: Assaí (wholesale format) and Multivarejo (controller of the Extra hypermarket and Pão de Açúcar supermarket formats).

Each will consist of fully dedicated operating, commercial, marketing and logistics teams, while suppliers will be provided with unique conditions to ensure price competitiveness.

The Compre Bem banner will fall under the management of the Assaí team.

According to Belmiro Gomes, President of Assaí and Compre Bem, local stores, such as those under the Compre Bem banner, have greater agility to adapt to changing consumption, with higher growth potential than larger stores.

The Compre Bem stores will have, on average, 1,700 square metres of floor space and around 7,000 SKUs, adapted to each region.

The store model will be more focused on perishables, mainly fruit and vegetables, bakery and butcher services. A dedicated distribution centre to supply the new stores will be located in the city of Arujá.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine

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