Carrefour Brazil will be shifting its focus away from hypermarkets and towards cash-and-carry stores, shopping clubs, and neighbourhood stores in the coming years.
The Brazilian retailer, which is owned by Carrefour France, plans to invest between BRL 2.3 billion (€427 million) and BRL 2.6 billion (€483 million) in 2024, growing the Carrefour Express, Atacadão, and Sam’s Club brands as part of its expansion plans.
Store Conversion
The retailer also plans to convert around 40 hypermarkets into Atacadão and Sam’s Club stores between 2024 and 2026, with about half of those conversions happening next year.
Carrefour Brazil noted that it will also open between ten and 12 Atacadão stores and between seven and nine Sam’s Club stores in 2024.
This move reflects the growing popularity of these formats in Brazil, as consumers seek more affordable and convenient shopping experiences.
The company also plans to reduce its inventory levels by approximately two days, to improve its efficiency.
The aim of all these measures is to generate returns for shareholders.
Financial Expectations
At the same time, Carrefour Brazil has had to adjust its financial projections due to the uncertain economic conditions in Brazil. It has withdrawn its previous forecast of reaching BRL 100 billion (€18.6 billion) in gross sales for its Atacadão business unit in 2024.
As of the end of September, the company operated 143 hypermarkets, 47 Sam’s Club stores, and 361 Atacadão units.
Atacadão is the largest cash-and-carry chain in Brazil, and Sam’s Club is a popular shopping club – the brand name of which is owned by Walmart.
Carrefour Brazil reported a net profit of BRL 132 million (€24 million) in its third quarter, down by 59.1%, year on year, on gross sales of BRL 28.2 billion (€5.2 billion), dropping by 3.9%, compared to the same period in 2022.
