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.