Brazilian retailer GPA ended the first quarter of 2017 with net total food sales of R$ 10.55 billion, up 9.5% year-on-year.
Of the total, the Multivarejo channel accounted for R$ 6.51 billion (+0.4%), while Assaí contributed with R$ 4.03 billion (+28.8%).
Net same-store sales grew by 5.6% in the reference period.
The positive performance was due to the recovery at Extra Hiper and consistent growth at Assaí. Both formats outperformed the market, according to Nielsen data.
In the Multivarejo channel (Extra, Pão de Açúcar banners and neighbourhood stores), same-store sales grew 2.0%. Extra Hiper presented same-store sales growth above Q4 2016, reaching 5.4%, while recovering market share.
Assaí saw same-store growth reached 12.9%, driven by the continuous double-digit growth in customer traffic but impacted by lower food inflation (from 13.1% in Q1 2016 to 5.2% in Q1 2017)
In Q1 2017, GPA focused on continuing the store portfolio optimization plan: five Extra Hiper stores were closed and converted to Assaí; 16 stores of various banners were also closed; one Pão de Açúcar was opened, while eight stores are under construction (seven Assaí and one Minuto Pão de Açúcar. These stores should be delivered in Q2 2017 or early Q3 2017.
© 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
