GPA has partnered with start-up Cheftime as part of its strategy to accelerate food delivery, while the retailer has also signed an agreement with Livelo to increase its ecommerce business.
Cheftime partnership to create meal kits…
GPA has announced a partnership with start-up Cheftime, which offers an online meal kit subscription service. The partnership entitles GPA to acquire a controlling interest in Cheftime within 18 months, which could be extended to two years. The financial details of the partnership have not been disclosed.
The retailer has also started marketing an exclusive line of meal kits, ‘Cheftime by Pão de Açúcar’, on a trial basis. The line will be available in a store in São Paulo and through its website. GPA will extend the partnership to 15 to 20 Pão de Açúcar and Minuto Pão de Açúcar stores in Q1 2019.
Peter Estermann, CEO of GPA, commented, “This partnership places us at the vanguard of the retail sector in Brazil, aligned with a strong global food retail movement in offering a complete food solution. As of today, we have broadened the reach of our customers omnichannel experience, in physical store and e-commerce, with a value proposition in line with our digital transformation strategy, offering our clients practicality and convenience, through a pleasant and simple cooking experience.”
…and accelerate food delivery
The partnership is also aimed at creating an omnichannel experience through integrating online and in-store sales. The retailer intends to expand its ‘express’ home delivery service using store inventory to delivery orders within two hours. The service currently operates in 60 stores but will be expanded in 2019.
Estermann said GPA remains open to acquiring more food technology start-ups in the future. He commented, “There are ongoing reviews, we have direct contact with start-ups and we believe this is an important path for our digital transformation”.
Livelo agreement to combine loyalty points
Meanwhile, GPA has signed a deal with loyalty programme company Livelo to increase its ecommerce sales. Livelo is an online loyalty site that offers discounts off a range of products and services, from electronics to hotels.
From November 2018, customers who subscribe to GPA’s Clube Extra or Pão de Açúcar Mais apps and Livelo can apply to use Livelo points directly through GPA’s loyalty platforms. The deal will first involve GPA’s Extra and Pão de Açúcar banners but could be extended further if the initiative proves successful.
For subscribers wanting to see how GPA fits into the wider grocery retail market in Brazil, see our country presentation.