Grupo Éxito has reported that food sales grew by 8.6% for the second quarter of 2016 across Colombia, Brazil, Uruguay and Argentina, and representing 62% of total sales. It commented on "outstanding performance" in Colombia, Uruguay and Argentina, and a progressive improvement in Brazil.
Colombia: growth reflects expansion
The 8.0% growth in sales in Colombia reflects expansion over the past year. The group highlighted the good performance of its first Surtimayorista cash and carry in Bogotá, which has become a new axis of expansion. Grupo Éxito has also been strengthening the Aliados Surtimax and Super Inter model which sees it partner independent stores and minimarkets to reach shoppers in small neighbourhoods or towns, improving the product proposition for smaller shops and helping increase sales.
Brazil: Assaí continues to deliver
Consolidated sales of GPA were up 4.9%, with the usual solid performance by Assaí where sales were up 37.6%. This contributed to 11.3% growth in food category sales. There is ongoing expansion in Brazil: ten Assaí and nine other stores are to open in H2, of which five will be the Minuto Pão de Açúcar proximity supermarket format.
Argentina and Uruguay: it's all about proximity
Grupo Éxito reported 30.9% sales growth at Libertad, driven mainly by the good performance of proximity formats (sales up nearly 50%) and 32% growth in food sales. This reflects the impact of the 'La compra del mes' (purchase of the month) strategy, which has been imported from Brazil. On our visits, we have seen how proximity competition is intensifying in Argentina, with various retailers identifying opportunities. Find out more here.
Revenues were up 19.2% in Uruguay. Proximity formats remain core to expansion in this market, with Devoto Express now reaching 14 stores, mostly in Montevideo.
Synergies from consolidation are having an effect
CEO Carlos Mario Giraldo Moreno said the group was very pleased with the positive results of the integration process and progress of synergies between the countries is in full swing. In the year since operations were consolidated under Grupo Éxito, around 18 projects have been developed. These include joint purchasing of commodities like oil, salmon, and apples on the international market, as well as implementing the Colombian textile model in Brazil and (imminently) in Argentina.