Brazilian grocery retailers GPA and Assaí Atacadista have announced plans for a raft of new store openings in the period 2022-2024.
GPA plans to open 100 Pão de Açúcar stores by 2024, compared to the previous goal of 50 by 2023. At the end of Q3 2021, GPA had 181 Pão de Açúcar stores.
During a conference call, president Jorge Faiçal said that, out of the 100 stores planned, 14 have already been approved and an additional 14 regard conversions of Extra hypermarkets, reports Valor Economico.
GPA also plans to open 100 new shops under the proximity formats Minuto and Pão de Açúcar Fresh by 2023.
Faiçal pointed out that, with the Q3 2021 results, the proximity format has seen 13 consecutive quarters of double-digit growth, adding that the Pão de Açúcar banner should account for 50% to 60% of GPA’s turnover in 2022.
GPA reported consolidated net revenue from Q3 sales of 12.1 billion reais (€1.89 billion), in line with Q3 2020, with LFL sales, excluding hypermarkets and drugstores, in line with Q3 2020. The figures include the performance of GPA Brasil and Grupo Exito (Colombia, Uruguay and Argentina).
The group recorded all-time high online food sales of 475 million reais (€74.5 million), up 46% and accounting for 9.3% of total sales (6.3% in Q3 2020).
The share of private label brands reached 21.5% in Q3 2021.
In Brazil, GPA Brasil’s total sales reached R$6.9 billion (€1 billion), with LFL sales down 5.6% year-on-year. Excluding hypermarkets and drugstores, sales were in line with Q3 2020.
In turn, Assaí Atacadista has a 2022 goal of opening 18-20 shops organically, with construction work on 8-10 stores already starting in order for them to be opened in early 2022.
Speaking to Valor Economico, CEO Belmiro de Figueiredo Gomes, said that plans for the current year foresee the opening of 25-28 stores, of which 12 have already opened, taking the total to 196.
The company is investing nearly 2 billion reais (€313.8 million) in 2021, mostly for the network expansion, with some resources going towards existing stores.
The CEO of Assaí also revealed that the conversion of 40 of the 71 Extra hypermarkets acquired from GPA should be completed by August 2022.
Assaí reported profit of 538 million reais (€84.4 million) in Q3 2021, up 23.1% year-on-year, while net revenue increased 17.2% to 10.84 billion (€1.7 billion). LFL sales were up 4.5% in the period.
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