Grupo Carrefour Brasil anticipates around R$2 billion (€371 million) in synergies by 2025 following its acquisition of Grupo Big.
According to Carrefour Brasil CFO, David Murciano, 10% of that amount will be achieved in the first year.
The deal will also see the overall turnover of the combined company surpassing R$100 billion (€18.5 billion).
Carrefour Brasil plans to invest R$ 2.1 billion (€389.4 million) in the conversion of 124 shops, following the acquisition.
The 38 Maxxi Atacado, 4 TodoDia and 80 Big shops will be converted into 70 Atacadão, 47 Carrefour and 7 Sam's Club outlets, as a process that should be completed by the end of 2023.
Sam's Club Set To Drive Growth
Carrefour Brasil sees Sam’s Club as one of its main growth accelerators, with a potential to open 40 new stores over the next four years, mainly in the metropolitan regions of Sao Paulo and Rio de Janeiro, followed by state capitals and large and medium-sized cities.
Targeting consumers with higher purchasing power, there are already 43 Sam’s Club outlets in operation.
Each Sam’s Club customer spends R$ 340 (€63) on their average basket, while at Carrefour this expenditure is R$ 140 (€26).
Carrefour Brasil has an agreement in place with Walmart to use the Sam's Club band until 2026, but negotiations are already underway for a renewal of this contract.
On the logistics side, the new group plans to reduce the total of distribution centres from 64 to 51. Ten Grupo Big warehouses will be closed and another two will be unified.
This reduction will take place in states where the group has a higher concentration of these properties, such as São Paulo, Santa Catarina and Rio Grande do Sul.
Carrefour Brasil added that it is not ruling out further acquisitions, adding that it is always looking at possible market opportunities.
© 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.