Latin America: Grupo Éxito in focus

Date : 11 October 2016

Based in Colombia, Grupo Éxito is now the centre of Casino's operations in Latin America. We look at what's driving growth for the retailer.  

'Multilatina' position creates a strong group

Since the restructuring in mid-2015, Grupo Éxito has become much stronger, calling itself 'multilatina' to show its wide capabilities and market coverage. We are already seeing results from the change. Grupo Éxito has developed around 18 joint projects, such as buying products like apples or salmon on the international market, or using knowledge from its proximity formats in Colombia to develop stores in Uruguay. The group will enter into more of these types of project as it identifies opportunities in food and non-food categories.  

Group strength: atacarejo (wholesale)

In Brazil, atacarejo (wholesale) banner Assaí is attracting larger and more varied groups of shoppers. It is consistently one of the group's strongest performers in terms of trading; sales in the last two quarters have increased by over 30%, and 10 stores have opened over the past year. As the Brazilian economy struggles and unemployment is high, shoppers are attracted to the value delivered by its low price, basic format.

Grupo Éxito has used the expertise gained in Brazil to develop Surtimayorista in Colombia which opened in May 2016 and is already starting to perform well; sales are above group expectations. Éxito will open two more stores in 2017 to serve the traditional and modern retail trade, and the final consumer.  

Group strength: proximity retailing

In proximity we are always impressed by Minuto Pão de Açúcar in Brazil. Its specialist ranges are aimed at a more premium customer, for example we have been seeing more and more organic and healthy eating products in-store. As with wholesale, Grupo Éxito has exported its knowledge to other markets. Proximity retailing is also boosting sales for the group in Argentina, and it has taken the express banner from Colombia to Uruguay as it expands smaller formats there.

Group strength: online

In Brazil, the group is increasing the number of products available on the Extra marketplace. In Colombia, É and stock more than 60,000 food and non-food products between them, and Éxito has launched mobile commerce in Colombia. 

In non-food e-commerce, Cnova has exited non-essential markets and is now concentrating on its largest markets, of which Brazil is one. Sales have fallen over the past two quarters, but customer numbers are up and the number of customers visiting the sites on mobile devices has increased.  

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Catherine Ellwood is an analyst at IGD. She is responsible for research into Latin American FMCG markets and retailers.

Gavin Rothwell
is retail insight manager at IGD, sharing insights across key channels, retailers and markets worldwide.
Gavin Rothwell @gavinroth_igd