Casino-owned, Brazil-based GPA has announced third quarter results saying consolidated total sales rose by 4.4% to BRL15.1 bn (US$4.7 bn), with its performance driven by its food businesses and its Assaí atacarejo fascia in particular. As in recent quarters the overall results were held back by weakness at its Cnova ecommerce division, but there was brighter news in its Via Varejo arm where sales turned positive in the quarter, at 0.4%, versus a 6.9% contraction in the first half.
Food businesses continue to outperform
GPA said its Food segment saw total sales rise 14.0%, with this driven by its Assaí fascia, which enjoyed an acceleration of growth to 45.7%. GPA noted that same store sales of food categories achieved growth of 11.4% in the third quarter, while total sales rose 18.6%, boosted by the opening of three Assaí stores during the quarter. This sustained period of growth for Assaí was boosted by the continued and gradual recovery of performance at Multivarejo, where total sales rose 1.1%, aided by an ‘improved performance by Extra’.
Initiatives at Multivarejo begin to bear fruit
GPA said that its implementation of a range of new initiatives at Multivarejo to improve its price competitiveness and perception with shoppers had helped underpin growth at the business. It said that its ‘1,2,3, Passos da Economia’ (’1,2,3 Savings Steps’) promotion, in conjunction with offering competitive daily prices on fruits and vegetables and the lowest price on a selection of staple, everyday products had helped drive volume sales at the banner. However, the positive performance with food was offset by continued weakness in non-food sales, which GPA said ‘continue to be negative’.
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