Sugarloaf provides retail growth in the second half of 2017

São Paulo – the Pão de Açúcar group expects retail sector growth in Brazil in 2017, but will keep the investments at the same level this year, and will strengthen presence in the atacarejo format, and can view up to 26 new points of sale of Açaí flag.
The Chief Executive of Brazil''s largest retail network, Ronaldo Iabrudi said to journalists that the company prepares 15 to 20 conversions of hypermarkets Extra flag in Assai, plus six new stores Assaí next year.
The total represents the highest number of store openings Assai of the GPA since 14 openings recorded in 2014.
The company''s focus in the atacarejo segment happens amid the effects of the recession on consumers who are opting for the format that offers lower cost.
According to Iabrudi, "from 2002 to 2013 everything they did in retail work (...) With Açaí has to be aggressive on price, or does not survive ".
"We''re going to maintain price agresssividade where we do it," said the President of the GPA to be asked whether the company can expand the price reduction efforts next year.
The Executive also commented that the GPA must be in 2017 store openings in square meters close to the level of 2016, but that in terms of unit stores there will be reduced. He didn''t comment on details.
"The gross 2017 should be slightly higher this year, because we have more Assai", said Iabrudi.
Already the financial Vice President, Christophe Hidalgo, commented that the expectation is that the company''s sales per square meter will grow "a little more than inflation".
Hidalgo said the investment planned by GPA in 2017 will be 1.6 billion reais, same value this year.
According to him, the share of investments intended for the food area will be "slightly higher" than anticipated for the ViaVarejo, network of furniture and appliances being sold by the Group and whose resources will be reinvested in the GPA.
Hidalgo commented that the results of the GPA this year should be boosted by a positive impact of 600 million dollars in earnings before interest, taxes, depreciation and amortization (Ebitda) connected to the decision of this last quarter to account for the benefits of the so-called law of right, which zeroed IPI and Cofins some electronics such as computers and mobile phones.
Other networks, like Magazine Luiza, already benefiting from the effects of the legislation after injunction that suspended earlier this year to repeal the benefit up to 2018, but the GPA followed by analyzing the matter internally.
According to Iabrudi, after three months of study, consulting company juridícas "gave the green light to do in the last quarter and the result of ViaVarejo will use the tax benefit which the law gives me".
The President of the GPA stated that the company promoted downsizing in administrative areas since October and that the effects of the reductions should be felt from 2017, with estimated savings for the year to 120 million reais.
Among the new fronts of the group, Iabrudi commented that the GPA opened in November a distribution center in the city of São Paulo to serve specific area food sales made over the internet.
"In 2017, we will have greater emphasis on food e-commerce," said the Executive.
In addition, the company must multiply by five the number of establishments engaged in the program. The program provides administrative and technological support to merchants who set up their inventories with products purchased from the GPA.
The expectation is that the Allies end 2016 with 100 establishments, a number that should grow to 500 in 2017, said Iabrudi.