Brazil’s biggest food retailer, GPA, has revised its initial projections regarding the number of new stores it plans to open by 2024.
After reviewing its expansion plan, GPA has decided to accelerate the opening of proximity stores, aiming for up to 300 new stores by 2024.
The focus on the proximity format is due to the greater potential in the cities where GPA is already present, and the fact that these stores require a lower capex than the other formats, in turn generating a faster return.
Store Openings In 2022
During this year, 75 stores will be opened, including 24 conversions of Extra Hiper, six Pão de Açúcar and 45 proximity stores.
Another 100 stores will be added in 2023, to be followed by 125 outlets in 2024.
The company warned that the latest projections and estimates may be modified due to impacts from internal or external macroeconomic and political factors.
GPA And Éxito
Separately, GPA has announced the findings of preliminary studies relating to the potential segregation of GPA and Colombian subsidiary Éxito.
The transaction would see a capital reduction of GPA with the goal of distributing 83% of Éxito shares held by GPA to its shareholders.
Following the closure of the operation, GPA would retain a minority 13% stake in Éxito, with a potential for monetisation in the future.
After confirmation by GPA’s shareholders at an extraordinary general meeting, the company expects to complete the transaction during the first half of 2023.
© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.