Brazilian retailer GPA has reported a 9.5% year-on-year growth in sales, to R$ 14.57 billion (€3.17 billion), in the third quarter of its financial year.
The positive performance was driven by a continued increase in customer traffic and the addition of 19 stores to its network in the past 12 months.
Divisional Performance
The company's Atacarejo segment (mixed retail), branded as Assaí, saw an 18.9% growth in revenue, to R$ 7.59 billion (€1.65 billion), during the period.
GPA opened three Assaí stores during the quarter and has announced plans to launch 10 more in the fourth quarter, taking the total number of new stores this year to around 20.
The banner is expected to operate around 165 stores by the end of the year in 20 Brazilian states.
The retailer is also constructing 6 new Assaí stores, scheduled to open in 2020.
The Multivarejo division (other retail activities) reported a growth of 0.8% to R$ 6.98 billion (€1.52 billion) during the quarter, driven by the performance of the renovated Pão de Açúcar outlets and stores converted to Mercado Extra and Compre Bem.
Two Pão de Açúcar refurbished stores opened in the quarter, taking the total number of renovated stores to 28.
In addition, 39 Extra Super stores were converted into Mercado Extra in the third quarter, taking the total number of outlets to 82.
In the fourth quarter, around 20 stores will be converted into Mercado Extra and about 15 into Compre Bem, the retailer said.
In the proximity format, one Minuto Pão de Açúcar store opened in the third quarter, while nine are under construction and scheduled to open in Q4.
Private-label brands accounted for 12.7% of Multivarejo food sales, driven by new product categories such as craft beer, sodas, fermented milk, and dairy-based desserts.
E-Commerce
Food e-commerce grew by more than 30%, supported by the success of the Express and Click & Collect delivery formats, GPA said.
The services are offered in 113 stores under the Pão de Açúcar and Extra banners, with 107 stores offering both.
Two stores have implemented self-checkout kiosks, which are used by more than 25% of the customers.
Pre-scan facility improved the shopping experience of more than 10% of customers, while the Scan & Go feature contributed to more than 15% of sales, the retailer added.
© 2019 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.
