Carrefour hits target of 20 new Atacadão openings in 2018

Date : 21 December 2018

Carrefour has achieved its aim of opening 20 new Atacadão stores in Brazil in 2018. It currently has 166 atacarejo stores and 27 wholesale delivery stores under the Atacadão banner.

Plans to continue aggressive expansion plan in coming years

Carrefour will continue its aggressive expansion of the format having announced plans to open 20 stores annually, for at least the next three to four years.

"Over the past 10 years, we have maintained investment no matter what happens. There will be 20 stores a year as long as there is space in these markets," Atacadão’s CEO Roberto Müssnich told Reuters.

Earlier this month Carrefour announced that it will invest BRL1.8bn (US$465m) into its Atacadão stores in 2019, the same amount invested in 2018. 10 stores are already under construction and are expected to open in the first half of 2019.

Atacadão remains the atacarejo market leader in an increasingly competitive market

Atacadão remains the dominant atacarejo format in Brazil. It faces some competition from GPA’s Assaí stores, however sales for Atacadão are more than 50% higher. In Q3 Carrefour reported a +5.1% increase in like-for-like sales in Brazil. The rapid expansion of Atacadão in recent years has been a key factor in improved sales performance.

Based on this success, there is the risk that new players could enter the cash and carry market. There is also the possibility that as the Brazil’s economy recovers from recession and consumer confidence grows, that customers may migrate back to traditional super and hypermarkets. In the short-term however customers remain attracted to the comparatively lower prices versus other formats and atacarejo continues to gain market share from other channels.