Brazil’s largest retailer, Grupo Pão de Açúcar (GPA), has reported a 6.8% growth in net sales in its food business in fourth quarter of the year, reaching R$12.51 billion (€3.17 billion).
Meanwhile, like-for-like store sales were up by 3.5% compared to the previous year, boosted by strong performance in the group's Assaí cash and carry segment.
This brought the retailer's total sales for the full 2017 fiscal year to R$44.63 billion (€11.33 billion), representing growth of 8.2%,.
GPA's Multivarejo business, which includes Pão de Açúcar supermarkets, Extra hypermarkets and Minimercado stores, saw a drop in sales of 4.9% in Q4, and of 2.1% for FY 2017.
This was due to stronger food deflation, continued migration of customers to other channels, and the closure of 17 hypermarkets in 2017, 15 of which were converted to Assaí.
However, the Assaí cash and carry wholesale segment saw strong growth both in Q4 (+28.2% to R$5.44 billion) and FY2017 (+27.8 to R$18.44 billion).
This was mainly driven by the 20 new store openings in 2017, including 15 conversions and five organic additions, as well as by the banner’s entry into two new states - Minas Gerais and Piauí.
In 2017, GPA opened a total of eighteen new stores, including five Assaí, three Pão de Açúcar, six Minuto Pão de Açúcar, two Extra drugstores and two gas stations.
Meanwhile, GPA continues to expand its private label offering, with recent launches in the coffee segment.
Taeq, the retailer’s exclusive brand sold in Extra and Pão de Açúcar stores, has introduced 100% arabica organic coffee capsules, adding to its range of more than 400 references.
Similarly, the Casino brand has also started marketing its first line of Brazilian arabica coffee capsules. Available in the same store banners, the new product is offered in two varieties, smooth and intense.
© 2017 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