Grupo Éxito reports revenue of US$4bn

Date : 21 November 2018

Casino-owned, Colombia-based Grupo Éxito has released its Q3 results. The retailer reported an increase in consolidated net revenue of 9.5%, to US$4bn, before adjusting for exchange rate differences.

The group recorded growth in each of its four operating countries; Argentina, Brazil, Colombia and Uruguay. At the end of the quarter, Grupo Éxito had a total of 1,536 stores; 29 in Argentina, 870 in Brazil, 549 in Colombia and 88 in Uruguay.

Argentina: sales growth of 23.5%

Grupo Éxito’s operations in Argentina increased sales by 23.5%, in local currency terms, with same-store sales rising by 24%. The retailer said its performance was driven by ‘FMCG, fresh and home categories’. It noted that Libertad ‘continued to outperform the market in the midst of a challenging macro environment’.

Brazil: sales growth of 12.9%

In Brazil, Grupo Éxito’s food business, operated through GPA, increased net sales by 12.4%, with same-store sales rising by 6.4%.

GPA’s wholesale division, Assaí, ended the quarter with 134 stores, having opened 19 during the last 12 months. Assaí’s strong net sales growth, at 25.8%, was supported by same-store sales growth of 8.2%. The pace of sales growth saw it account for 47.8% of GPA’s total sales at the end of the quarter. Exito noted that Assaí had ‘posted the best performance per square metre in the last five years.

Meanwhile, net sales at its Multivarejo division rose 3.2%, with same-store sales up by 6.0%. Exito said the sales growth confirmed the banner’s recovery since Q2 2018 and had been aided by ‘innovative commercial strategies, digital transformation and private label repositioning’. GPA’s digital transformation continued as it registered over 6.5m downloads of the Meu Desconto app.

Colombia: sales fell by 0.9%

In Colombia, excluding calendar effects, net sales fell by 0.9% to COP2.5tn (US$801.2m). Contractions at its Exito (of 1.2%) and its Surtimax and Super Inter (of 8.6%) banners held back its overall performance. The performance of these banners was partially offset by growth at Carulla (+0.8%) and its B2B formats (+26.2%).

Adjusting for calendar effects Exito said net sales and same-store sales had shown an ‘improved trend in all banners’. This has had been driven by a higher share of sales coming from the non-food category, a solid performance from omni-channel, strong sales (+59.2%) and same-store sales (+44.8%) at Surtimayorista and a ‘solid contribution from 16 stores opened in the last 12 months’.

Exito also pointed to “the new concepts Éxito Wow and Carulla Fresh Market, the commitment to ecommerce channels and the monetisation of traffic through complementary businesses and real estate”. Grupo Éxito’s new store concepts, Éxito Wow Envigado and Carulla Fresh Market generated significant growth and were positively received by customers. Sales through Grupo Éxito’s ecommerce channels in Colombia increased by 35.2% and represented 3.6% of the group’s total sales. 

Uruguay: sales growth of 4.7%

Sales in Uruguay grew 4.7%, in local currency terms, amid the challenging economic situation in neighbouring countries, Argentina and Brazil. Same-store sales rose by 4.0% ‘driven by the supermarket and convenience formats’.

For subscribers wanting to learn more about how the group caters to different shoppers needs, see our Grupo Éxito: four formats in focus presentation.