Sugar Loaf must double bet in the atacarejo

Grupo Pão de Açúcar power (GPA), now separated from Via Retail-operation of appliances for sale – will double in atacarejo this year. The company, which opened 13 stores in 2016, Assai brand will expand the network by up to 28 units this year, according to company President, Ronaldo Iabrudi. The mood is justified by numbers. In 2016, the total sales of the group rose 11.7%, to R$ billion, while revenues 45 of Assai jumped 39.2%.
Sugar Loaf, French-controlled Casino, is not alone in betting on atacarejos-in recent years, the expansion of Carrefour also has focused on Atacadão, leader in the segment. Iabrudi assessment, prioritization of the format reflects a change in function of the crisis, Brazilian consumption pattern. The Executive says that even if the economy winds more favorable, the clientele will continue preferring to go to a store easier and pay less for the products.
A search of the Sugarloaf shows that 96% of people who "discovered" the atacarejo during the worsening of the economy say they will continue to give preference to these stores even though the Country grow again.
The Commission points out that, until now, there hasn''t been a "turning point" in the economic scenario. The Deputy leader of the Brazilian power market is growing with market share gains, as well as Carrefour, which occupies the first place (see table). According to the Brazilian Association of Supermarkets, the GPA closed 10.8% industry with 2016, compared with 11.8% of Carrefour.
However, according to a report of the Bank Brazil Plural, the trend is that the difference between the first and second placed decrease in 2017. And it occurs because the relative performance of the sugar loaf is good too off the atacarejo. "The ranking doesn''t reflect the timing of sales of the GPA," says the Bank''s report. The institution highlights that, while sales of hypermarkets Carrefour are in the zero to zero, the Extra, hypermarket of the GPA, grows 5%, on average, in stores open more than 12 months.
"The size of the market is not increasing. On the contrary, the cake is getting smaller, "says Iabrudi. Despite this, the internal work done by the GPA must appear in the results from January to March, says the Executive.
Formats. Although the recession has started in 2015, Iabrudi claims that the slowdown began to be felt in retail a year earlier. It was at this time that the GPA began to redefine the importance of each of their formats.
In 2013, the hypermarkets accounted for 50% of sales of the Group; followed by grocery stores (30%); and the Assai (20%). The relationship is reversed: until December, the atacarejo will have 43% of revenues; hypermarkets, 35%; and other formats, 22%. Still, the atacarejo dependence will be less than the Carrefour, which today is in 65%, according to the Brazil.
Although the company has managed to improve the result of Extra flags, the trend is accelerating the conversion of hypermarkets in atacarejos. Last year, opened 13 stores Assai. In 2017, the format can earn up to 28 new units. Between 6 and 8 units will be built, while between 15 and 20 Extras will be transformed into Assam.
In relation to the hypermarket, the atacarejo has 30 percent more customers stream and average value of purchases 100% higher. After the conversion, revenues per store comes to triple. "No one goes to an Assai just do a comprinha", says Iabrudi.