New Fronts of Action

With gross revenue of R$ 21.6 billion and a 56.5% increase in the first quarter, GPA is preparing to invest in new projects in the coming months. The company will enter the restaurant market with the opening of four dark kitchens in Sugarloaf stores, in a pilot project, for cheftime operation. The spaces will be focused on preparing meals for sales through James Delivery. In the third quarter, the GPA will also start operating its food marketplace. The project, which was scheduled for 2021, was anticipated and is in the process of negotiating with sellers. The initiative is a reflection of the 82% advance in e-commerce, which the group believes is a growing trend. James Delivery ended the quarter with 8 times more sales compared to the previous year. The investment of R$ 1.8 billion planned for 2020 will be maintained, as well as the opening of 20 stores of the assaí wholesale cash & carry chain and 50 units of the proximity flag Minuto Pão de Açúcar. The retailer also intends to convert up to 15 sugar loaf points to the generation 7 model, 50 supermarkets for the Extra Market format and 10 Extra hypermarkets will be transformed into Assaí. However, store openings and conversions are expected to focus on the second half of the year due to the pandemic. According to Belmiro Gomes, CEO of the cash & carry banner, many regional networks have bet on an expansion volume above their cash generation and, therefore, should preserve investments in the coming months, making room for Assaí.