Chilean based retailer Cencosud continues to experience challenges in 2018, leading to decreasing revenue. We look at its Q2 results in more detail. This includes each markets performance and how it plans on improving results through delivering a strong omnichannel proposition.
Challenging start to the year
Cencosud's Q2 results follow the pattern of Q1 with declining performance due to the heavy impact of currency fluctuations. Other Latin America-based retailers however have achieved positive performance. For example, Grupo Èxito Q2 results were +8.7% suggesting Cencosud could be facing other challenges.
Cencosud's results were;
- Overall revenue -6.9%
- At a constant exchange rate revenue +8.3%
- Supermarket revenue -9%
- Chile’s year-on-year was +2.3%. The positive performance was driven by increased promotional activity
- Argentina’s year-on-year was -24.8%. Despite increased promotional activity the retailer was hampered by the challenging macroeconomic background in the market
- Brazil’s year-on-year was -15.2%
- Peru’s year-on-year was -5%. Sales were partially offset by the remodelling of one store
- Colombia’s year-on-year was -5.5%. Higher online and apparel sales helped improve the results
Cencosud has invested heavily in developing its omnichannel proposition. The aim is to generate better performance in the future as shoppers become more accustomed to using the channel. This investment continues and shows positive results. This will continue to be a priority for development in the future.
- Online channel +54.1%
- Reached +3.6% penetration compared to +2.2% 2Q2017
- Click and collect is now in 267 stores
- Drive thru is at 40 stores
- Order from store to home in 133 stores
- Self-checkout has been installed across multiple stores in Argentina, Chile and Peru
The retailer has also been continuously developing new technology internally to make processes more efficient such as; automated lighting, printed promotional posters about robotics to update stock prices.
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