Brazilian-based, Casino-owned GPA has seen an encouraging double-digit sales growth in its fourth quarter, following heavy investment in its store portfolio.
A strong December and increased same-stores sales contribute to overall performance
GPA announced a 12.1% year-on-year increase in net sales revenue for its food division in Q4. This strong sales performance follows an equally strong set of results in Q3 (12.4% annual growth). The business saw a 6.9% growth in same-store sales compared to the same period last year.
Sales were particularly strong during December where total sales increased by 15.5% and same-store sales increased by 9.7%.
Strengthening its multi-format portfolio is playing a key role in driving sales growth
In December 2017 year GPA announced plans to invest BRL1.8bn (US$465m) into its store portfolio. Throughout 2018 we saw significant development across multiple formats.
In its Q3 results GPA said the 19 hypermarkets it converted to the Assaí cash and carry banner significantly contributed to its overall sales growth. Sales for the Assaí banner grew by 26% at an organic level in Q3 and GPA announced Assaí sales represent almost half of GPA’s total sales. A further 10 stores in this format are currently under construction and are expected to open in the first quarter of 2019.
During 2018 GPA also opened 20 of its new premium concept stores under its Pão de Açúcar banner. The stores feature a new layout with a stronger emphasis on health foods and sustainable products.
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 GPA’s Assaí format. It also delves into innovations in the premium sector, including a view of GPA’s latest concept stores under its its Pão de Açúcar banner. This research can be found here.