Carrefour Brazil signs deal with regional family-owned supermarket chain

Date : 14 October 2019

Carrefour Brazil has handed over the management of 17 of its supermarkets in the South Eastern state Minas Gerais. The stores, which are all located in the state capital Belo Horizonte, will be managed by a regional family-owned retailer Super Nosso, however Carrefour will retain ownership.

Luis Moreno, chief executive of Carrefour Varejo (Carrefour’s supermarket and hypermarket operations) said this is “not a joint venture, but a partnership in which [Super Nosso] will manage our supermarkets. Gains will arise from an improved operating performance and synergies.”

Stores to be rebranded Super Nosso

Carrefour is dropping its own brand from these stores, which are to be converted to the Super Nosso banner over the next 12 months. The move will see investment from both retailers. As the owner, Carrefour Brazil will continue to accumulate revenue from the stores, however the exact financial terms of the agreement have not been disclosed at this stage. Super Nosso will become responsible for logistics, pricing and assortment policies.

Super Nosso will enhance its presence in Minas Gerais

This is a significant step for Super Nosso in growing its presence in Minas Gerais, taking total stores in its own banner from 32 to 49. Euler Nejm, Super Nosso’s Chief executive said, "We are hopeful we can deliver sales growth in these 17 supermarkets and gain more brand visibility in the region."

It is also a good move for Carrefour, who will to benefit from Super Nosso’s regional expertise and understanding of the customer base. Regional retailers have been growing faster than international retailers in the country, which should support Carrefour’s medium-term growth in Brazil. Carrefour Brazil is said to be holding talks with other local players for similar deals in other regions.

Initiative builds on global expertise

Carrefour’s flexible operating model, on a global basis, will help it maximise the opportunity with Super Nosso. Its recent agreement in Italy, which saw it sign master franchise contracts with two retailers, underlines how it is looking to grow sales in a profitable way, rather than having to own the complete route to market. Adapting its strategy in Brazil will potentially increase its volume sales, while also helping it maintain efficiency of its operations and supply chain.

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