Carrefour has announced gross sales of BRL$15.1 bn (US$3.7 bn) in Q3 for its Brazilian operations, an 8.9% growth (excluding petrol).
Like-for-like (LFL) sales rose by 3.8%, a decelerated level versus Q2 (+7.7%) and Q3 2018 (+5.1%), mainly attributed to the decelerating food inflation. The LFL growth represents an outperformance versus Carrefour’s main Brazilian competitor, GPA, whose LFL rose by 1.5% during the same timeframe.
Performance of hypermarkets and supermarkets reaches a five-year high
Gross sales for Carrefour’s main retail business (non-cash and carry) reached BRL$4.8bn (US$1.2bn) (including petrol). Its performance was driven by a strong 8.8% like-for-like in its hypermarkets and supermarkets, up from 8% in the previous quarter (and 2.5% in Q3 2018). The retailer said the formats had their best performance of the last five years, which it said was due to price investments and improved online sales.
Sales at Carrefour’s Express convenience banner saw double-digit LFL sales growth for the fourth consecutive quarter, with the retailer saying it recorded additional market share gains in Q3.
Atacadão performance driven by aggressive store expansion
Gross revenue for Carrefour’s Atacadão stores reached BRL$10.3bn (US$2.5bn), representing growth of 9%. Store expansion accounted for 6.9% of this sales growth and 5% of Carrefour’s gross sales. The business has opened 19 Atacadão stores in the last 12 months and three stores in Q3. It is on track to reach its aim of 20 openings in 2019.
LFL sales at Atacadão were 1.8%, versus 7.6% the previous quarter. The reduction was mostly due to decelerating food inflation, a challenging trading environment in Brazil and a tough year-on-year (YoY) comparison base (6.2% in Q3 2018).
Strong market place sales growth in ecommerce
Carrefour reported gross merchandise volume (GMV) growth of 44.2%. Marketplace sales outpaced own sales and accounted for 23% of total GMV (versus 16.1% in Q3 2019). Food ecommerce more than doubled its market share in Q3.
Further advances in omnichannel
Carrefour continues to strengthen its partnership with Rappi. The last mile delivery service is now available in 126 stores (up from 88 in Q2), across 26 cities.
The business continues to grow its Click and Collect and Drive online collection initiatives. For non-food, Click and Collect now represents over 19% of sales, up from 10% in the previous quarter. In five of its stores, Click and Collect services have been enhanced to include the food offer. If this is a success, we expect Carrefour to quicken the pace in extending the service to more locations in future.
Carrefour recently implemented side-stores to support its grocery home delivery. It currently has five side-stores in three cities. It said that using these has helped the business to reduce its average delivery time.
Continued growth of its health-food and private label ranges
Carrefour has implemented health-food aisles in 74 of its hypermarkets. It now has 3,000 SKUs of organic and health products, up 27% YoY. It now also has over 2,500 SKUs of private label and in Q3 the sales of private label represented 13% of total food net sales.
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