GPA will convert Extra stores to compete with regional supermarkets

The Grupo Pão de Açúcar (GPA) will reposition a part of your supermarket chain with the aim of attacking the growth of regional networks. In the press conference, the President of the company, Peter Estermann considered that regional networks showed a significant growth, especially in the years of economic crisis in Brazil. "We're going to copy what they (regional) do well and let's do a little bit better," said Estermann. The pilot project provides for the conversion of 20 Extra Supermarkets in flag stores Buy Well, which existed in the past but will be repositioned. These 20 conversions must be made this year. By the way, the company sees potential for at least half of the 187 Extra Supermarket stores to be converted. The new Buy Well Supermarkets will have an independent structure within the GPA, with a separate CORPORATE. With that, the GPA has three business units: the Multivarejo, with the Extra marks and Sugarloaf, Assai, of "atacarejo", and Buy Well. The current President of the Assai, Belmiro Gomes, will be the front of the Shop Well. He highlighted the increased penetration of regional supermarket format in consumer purchases. According to Nielsen data cited by company supermarket penetration in the purchase of the families left 48 percent in 2016 to 52% in 2017. Have the "atacarejos" were virtually stable, leaving 51% to 52%. The goal of the GPA to make the Buy a independent structure is that the relationship with suppliers is specific for this business. The company wants to position the new Buy Well in the same level of regional networks as Lee, Samir and Nagumo. Still, according to Estermann, the Buy Right will seek to have indicators of turnover per square metre exceeding the average of those competitors.