Carrefour Brazil announces 10.2% sales growth in Q4

Date : 23 January 2019

In its preliminary results announced on 21 January 2019, Carrefour Brazil has reported a 10.2% sales growth for Q4. This is the retailer’s fourth consecutive quarter of sales growth.

First double-digit sales growth in since Q4 2016

Carrefour Brazil has reported consolidated gross sales of BRL56.3bn (US$15bn) in 2018. Fourth quarter sales represent BRL15.8bn (US$4.2bn). This is a 10.2% increase when compared to Q4 2017 and is the first double-digit sales growth since Q4 2016.

Expanding its store portfolio has accounted for 4.3% of this sales growth, most of which has been generated from openings under its Atacadão banner.

Strong like-for-like sales for both Atacadão and Carrefour banners

Sales for both the Atacadão and Carrefour banners accelerated consistently (on a like-for-like (LFL) basis) every quarter in 2018.

Atacadão’s LFL sales increased by 7.4% in Q4 and 4.8% for 2018 (vs 3.6% in 2017). This is the highest quarterly increase reported since Q1 2017. Full year 2018 sales for Atacadão were up by 10.2%, with 5.6% of this coming from expansion.

Carrefour LFL sales (ex-petrol) increased by 3.5% in Q4 and 2.1% for 2018 (vs. 0.7% in 2017). Carrefour attributed this sales growth to successful commercial initiatives in its hypermarkets, improved proximity formats (where convenience saw double-digit growth) and stronger ecommerce performance.

Expanding its store network

Early in 2018 Carrefour Brazil announced plans to increase the number of Atacadão openings from  between 10 and 12 stores to 20. Carrefour opened a total of 26 stores throughout 2018. 20 of these were under the Atacadão banner, in line with its expectations. Most openings were in cities where Atacadão previously had no store presence.

As a result of these openings, Carrefour Brazil’s total selling space increased by 6.3%, with Atacadão’s sales area increasing by 13.6%. In terms of sales volumes, Carrefour said that Atacadão gained a market share of 80bps in 2018.

Carrefour has announced plans to continue its aggressive expansion plan of the Atacadão banner in 2019. It will invest BRL1.8bn (US$465m) and plans to open another 20 stores.

We have published a new piece of research which explores the five key trends set to shape the Latin American grocery market in 2019 and beyond. This covers the growth of the atacarejo (cash and carry) format, including Carrefour’s Atacadão banner. This research can be found here.