Brazilian retailer GPA has reported a 12.4% annual growth in net food sales during the third quarter of 2018, to R$ 12.28 billion (€2.85 billion).
The result was driven by strong performance of wholesale banner Assaí, which saw a 25.2% growth in net sales to R$ 5.86 billion (€1.36 billion), while same-store sales increased by 7%.
Four stores were inaugurated in the quarter (one conversion from Extra Hiper), which means the business has opened 19 stores in the last 12 months. Currently, 10 stores are under construction and one is being converted.
Store Expansion
Assaí expanded its presence to two new states, with the inauguration of the first stores in Belo Horizonte (Minas Gerais) and Curitiba (Parana).
In the retail segment (Multivarejo), which includes banners Extra Hiper, Extra Super, Pão de Açúcar, Minuto Pão de Açúcar, Minimercado Extra, total net sales rose 2.7% to R$ 6.39 billion (€1.48 billion).
In the quarter, 12 Extra Super stores and one Extra Hiper store were closed to be converted into Compre Bem. In addition, 6 Extra Super stores were converted to Mercado Extra, totaling 10 stores.
GPA ended Q3 with a store total of 1,063, a figure which includes gas stations and drugstores.
Meanwhile, Brazilian daily O Globo has reported that French retailer Casino has contracted lawyers to evaluate the consequences and reactions to a potential merger of GPA and Carrefour Brasil by Brazil’s Administrative Council of Economic Defence (CADE).
© 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
