Net Sales of R$10.7 billion, +9.0% vs. 2Q16, driven by:
- Solid growth at Assaí of +29.2%, with volume increase offsetting inflation drop
- Accelerating growth at the Extra banner, led by Hyper (+7.6% SSS growth vs. 5.4% in 1Q17)
- Multivarejo and Assaí continue to gain market share in the quarter (*)
– Continuous gains in market share in 2017 compared to 2016 due to commercial initiatives, despite current consumption challenges, lower inflation and unfavorable comparison basis due to the launch of the 1,2,3 commercial action in 2Q16;
– Growth accelerated at Extra Hiper, with same-store sales growth of 7.6% in 2Q17, vs. 5.4% in 1Q17, which supported higher market share levels compared to 2016;
– Notable sequential growth in the non-food category supported by initiatives mainly in mobile, besides general merchandise, household appliances and textiles;
– Launch of the “My Discount” program: personalized promotions generated by a mobile app targeting the approximately 12 million members of loyalty programs;
– Additionally, other initiatives were also implemented or are in process of implementation, to increase customer traffic and sales:
- New regional commercial actions
- Mobile bonus: promotional discounts obtained in stores can be converted into pre-paid bonus;
- Renovations of Pão de Açúcar stores: target to renovate approximately 15-20 stores in the coming quarters.
– Strong growth of 29.2% in total sales, driven by the strong performance of new stores and accelerated same-store sales growth of 13.5% in 2Q17 vs. 12.9% in 1Q17;
– Commercial actions and the banner‘s attractiveness resulted in a strong growth in customer traffic, driving volume growth that offset the slowdown in inflation (from 5.2% in 1Q17 to 2.3% in 2Q17);
– The conversions maintained sales at strong levels, delivering an average improvement of around 2.5 times. In the quarter, four stores were inaugurated, three of which were conversions and one was organic.
(*) Multivarejo and Assaí: outperformance of the industry average based on data from Nielsen.
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