Grupo Èxito reports solid Q2

Date : 30 August 2018

Grupo Èxito has reported strong Q2 results. All markets performed positively, with an overall 8.7% increase in net sales. We look at the results in more detail and what has driven growth.

Adapting strategy for individual markets

The retailer has been focused on tailoring its commercial strategy to cater to each market individually. It believes this is the driver of its positive performance. It is satisfying the different needs of shopper’s dependent on their culture. This flexibility has meant it has focused on the formats that show most promise for the future. For example, Carulla Fresh Market in Colombia and Assaí in Brazil.

Colombia: growth in online

  • Net sales growth of 0.8%
  • Same store sales increase of 0.2%
  • Store openings: four Surtimayorista conversions, one new Èxito and two new Super Inter stores

Colombia’s biggest success came from omnichannel with an increase in sales of 26%. This came from 10% growth from websites and a 66% increase in traffic to È through its mobile app. 73% of orders are now delivered through Rappi making the service much more efficient.

Other areas of improvement were in Bogotá, driven by the fresh market model. Carulla stores sales grew by 10.2% in June once all three new conversions were operating.

Brazil: driven by Assaí

  • Net sales growth of 10.4%
  • Same store sales increase of 3.9%
  • Store openings: two new Assaí stores and one conversion

Performance was driven by Assaí at net sales growth of 23.5%. The banner now accounts for 45% of the Brazil business. Digital transformation and loyalty activity also contributed to the positive results in Multivarejo stores.

Other markets

  • In Argentina net sales increased by 34.6%. This was driven by currency fluctuation.
  • In Uruguay net sales increased by 6.2%. In Q2 it also opened three new Devoto Express stores.

Future plans

Grupo Èxito has a positive outlook for the remainder of 2018. Expansion will continue across all markets.

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