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In partnership with Carrefour, Zaitt has opened a 24-hour convenience store in São Paulo, which is fully autonomous, requiring no cashiers or members of staff. This is in line with Carrefour Brazil’s strategy of partnering with startups and growing its digital capabilities in the country.

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Carrefour Brazil has announced it is expanding its partnership with Colombia-based Rappi to grow its online capabilities and reach further in the country.

Expansion aimed at helping Carrefour reach 2019 targets

Carrefour Brazil has said it wants online to account for 30% of its total sales by the end of 2019. The expansion of its agreement with Rappi will play a major role in its attempts to reach this target. The relationship between Carrefour Brazil and Rappi will see the two collaborate on the opening of 15 dark stores across nine of the country’s leading cities. The two companies said four dark stores will be opened in Sao Paulo alone.

Dark stores to be added to existing stores

Carrefour and Rappi said the dark stores would be built in existing hypermarkets and supermarkets, rather than as stand-alone sites in separate locations. The chief executive of Carrefour Brazil’s eBusiness division, Paula Cardoso, said that initially the dark stores would only be added to these two store formats, but could be extended to its Atacadão banner in future.

The agreement will see Carrefour looking after the collection of goods, while Rappi will look after the delivery of products to shoppers. Cardoso confirmed the first dark store would be opened in April.

Additional scale to underpin ecommerce growth

In its Q4 and FY 2018 results Carrefour Brazil said the ecommerce channel remained its fastest growing. The retailer said its Gross Merchandise Volume (GMV) grew five times quicker than the industry, to account for 9% of its total sales. While this pace of growth and its total sales is a combination of both food and non-food ranges, the retailer has said it is putting a strong focus on food in the coming year, with the aim of being the market leader in Brazil. The new fulfilment options and additional volume supported by its agreement with Rappi will support this growth.

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Net sales in Colombia have improved in the last four consecutive quarters. In Q4 net sales reached COP15,380.0bn (US$4.9bn), up 2.2%. This steady improvement was driven by the opening of 17 stores (including conversions) and the implementation of innovative new banners.

The business, at a corporate level, reported strong consolidated net revenue growth of 8.9% for FY 2018 and 10.2% for the fourth quarter. Positive sales growth was seen in all operating countries.

For more information on Brazil’s results under GPA see here.

Performance driven by improvement in same-stores sales (SSS)…

SSS performance grew throughout 2018 and was up 1.7% in Q4. This was predominantly due to the improved performance of the Éxito and Carulla banners, but also the strong YOY performance of its discount banner Surtimayorista;

  • In Q4 Grupo Éxito Colombia delivered its strongest net sales and SSS performance of the last seven quarters
  • Carulla was the best performing banner, growing in both sales and volume in 2018
  • Sales for the Surtimayorista banner were up 47.8% year-on-year (YOY), with a 36.9% increase in SSS (+24.7% in Q4)
  • Sales for the Surtimax and Super Inter banners are showing strong signs of recovery, because of the business refocussing on their ranges, logistics and price proposition

…and strong performance of latest store concepts

Grupo Éxito’s latest store innovations Éxito WOW and Carulla FreshMarket both delivered low double-digit sales growth in 2018. Carulla FreshMarket has now been implemented in five Carulla stores and there are two stores in the flagship WOW format.

Grupo Éxito strengthening omnichannel proposition…

Grupo Éxito delivered solid omnichannel growth in 2018 with full year sales up by 33.4% (37.3% in Q4).

Ecommerce sales grew by 11.5%, with over 61m visits. Market place sales saw a Gross Merchandise Volume growth of 54.6%. The development of its last mile services, including the acquisition of Rappi has strengthened its omnichannel proposition and delivered annual growth of 171.9%.

17 store openings in 2018…

In 2018 Grupo Éxito opened 76 stores in Latin America, including 47 conversions. The business aimed to open 12-15 stores in Colombia, of which eight would be under the Surtimayorista banner. The business surpassed this, opening 17 stores in the year, with six of those opening in Q4.

Openings consisted of four Éxito’s, one Carulla, two SuperInter and 10 Surtimayorista stores, with a combined gross sales area of 22km sqm.

15m customers now using Puntos Colombia loyalty card…

Grupo Éxito launched its ‘Puntos Colombia’ loyalty programme in H2 2018 and it is now the biggest points system in Colombia. Since launching it has seen its redemption rate grow to 80% of customers. 15 million customers are now members of the scheme.

Further expansion plans in 2019…

Grupo Éxito plans to open 18-20 stores in 2019, including remodels and conversions. Openings will consist of at least five Éxito WOW stores, five Carulla FreshMarket’s and 10 Surtimayorista’s.

Grupo Éxito expects that over 20% of its total 2019 sales will come from “innovative activities”, including WOW/FreshMarket concepts, Surtimayorista and further advances in omnichannel. 

Mexican retailer Soriana has seen three consecutive quarters of declining net profit. The business is refocusing on strengthening its private label, which it believes is key to improving its performance.

Net sales increase 0.1% in 2018

Soriana has reported annual sales of of MX$153.5bn (US$7.9bn), with same-store sales growth of 0.1%. Total revenue for Q4 was MX$41.0bn (US$2.1bn), up 0.3% year-on-year.

Year-on-year (YOY) results affected by operations efficiency programme

Soriana said that changes to its logistics and operational systems has affected its year-on-year financial results, which are its worst in over 10 years.

In 2018 Soriana suffered due to changes in its logistics/technological platform. This was caused by the retailer having to migrate the systems for the hypermarkets acquired from Comercial Mexicana to its own.

YOY sales were also impacted by 11 stores closures, which were closed to support driving efficiency.

Two new openings in 2018

Soriana opened two stores in 2018; a Soriana Híper in the state of Baja, Southern California and a Soriana Super in Mexico City. The business ended 2018 with 815 stores, nine fewer than FY 2017.

In 2018, just under 50 of Soriana’s ‘Mega Soriana’ banner were converted to its Híper and Mercado formats.

Investing in private label is key to driving improved performance

Soriana intends to refocus on developing its ‘Orgullos de las casa’ (proud of the house) programme, which should help to bolster the strength of its own brand.

"The special 'Orgullos de la casa' accentuates and highlights the presence of our brands on the sales floor. This program represents an increase of between 8% and 10% of the base sale of the own brand. "

Susana Espinoza, Director of Own Brand, Soriana.

There are currently 18 brands in Soriana’s portfolio, which are sub-divided into own and exclusive products. Soriana plans to work closely with its suppliers to enhance its own brand products, enabling it to offer them at lower prices.

Presentations

01/04/2019
See our up to date content plan for insight presentations on retailers, trends and channels globally.
25/03/2019

See how shoppers are using online rapid delivery and how manufacturers from across the world, can meet the opportunity.            

This report includes:

  • Shopper usage of within the hour delivery
  • Reasons to develop rapid delivery
  • Contact list of global providers, including meal aggregators and delivery couriers
  • Manufacturer case studies
  • Future developments, including personalisation and automation
18/03/2019
We take an in-depth look at the discount channel in Latin America. We focus on key markets, like Brazil, Colombia and Mexico, and the retailers driving growth in the channel, including ara and Bodega Aurrera. We consider the trends supporting the channel's expansion across the region, including private label growth and the targeting of core shoppers, and the implications of the channel's growth on suppliers.
01/03/2019
We review the outlook for Costco over the next five years and identify the company' top growth markets, including US, Canada, Mexico and UK. We look in-depth at its global strategic objectives across its wholesale and club store estate and how it is investing in its ecommerce operations, enhancing its technology and developing its range as it looks to grow revenues beyond US$200bn by 2023.
View all presentations

Key presentations

We take a look at the five key themes that are set to shape the Latin American retail sector in 2019 and beyond.

We take an in-depth look at the discount channel in Latin America. We focus on key markets, like Brazil, Colombia and Mexico, and the retailers driving growth in the channel, including ara and Bodega Aurrera.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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