Reuters logo
UPDATE 2-Brazil's Pão de Açúcar plans 100 new ministores in 2013
December 19, 2012 / 2:15 PM / 5 years ago

UPDATE 2-Brazil's Pão de Açúcar plans 100 new ministores in 2013

* CFO says to hit 2012 targets, investment near $860 million

* Growth focused on small supermarkets, NE and CW regions

SAO PAULO, Dec 19 (Reuters) - Grupo Pão de Açúcar , Brazil’s biggest retailer, plans to boost its supermarket business in 2013 with 100 new Minimercado Extra stores, Chief Financial Officer Vitor Fagá said on Wednesday.

The plan comes as the company expects to hit all of its targets for this year, Fagá told a meeting of investors and analysts in Sao Paulo.

“We will clearly meet our guidance for this year,” he said. “Investment is very close to 1.8 billion reais ($860 million).”

The retailer’s robust growth and aggressive capital spending reflects a strong bet that household consumption will continue to drive Brazil’s economy.

Rising consumer debt has weighed on demand for appliances and electronics this year, but Pão de Açúcar’s focus on its food business has enabled steady growth.

The company aims to boost investments 80 percent over the next three years in a push to increase sales by around 50 percent, according to local media reports.

Sales space has grown about 6 percent among the group’s food retailers, Fagá said, at the bottom of the company’s 6 percent to 6.7 percent target range for this year.

The small neighborhood Minimercado Extra supermarkets will continue to be the focus of the group’s growth, according to Fagá. The company is also working to expand its presence in Brazil’s northeast and center-west regions.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below