Net Sales of R$10.9 billion, +8.1% vs. 3Q16, driven by:
- Strong sales growth at Assaí of 25.2%, and 7.7% on a same-store basis. Despite the sharp deflation in the period, Assaí posted its strongest combined growth in sales volume and customer traffic of recent quarters
- Multivarejo reached same-store sales growth of 0.6%. Sales volume recovery at the Pão de Açúcar banner was the highlight. Extra Hiper continued to deliver the best performance among the formats, with market share(*) gains
- Acceleration of store conversions: 4 stores converted in the quarter, totaling 9 stores since 4Q16, which registered revenue growth of around 3.0x
- Multivarejo and Assaí continued to gain market share(*) in the quarter
– Continuous gains in market share(*) for over 12 consecutive periods and improvement in the trend of sales volume and customer traffic during the quarter, attesting to the success and maturation of the commercial policies implemented;
– “My Discount” program registered 3 million app downloads, which expanded the loyal customer base by 1 million. The program’s promotions are present already in around 25% of customers’ baskets at the Pão de Açúcar banner and in some 20% of baskets at the Extra banner;
– Recovery at the Pão de Açúcar banner supported by the commercial strategies launched since the end of 2Q17: highlights include “My Discount” program, “Collect & Win” promotion, assortment review and launch of iconic products;
– Extra Hiper continued to deliver the best same-store sales performance among all banners, with improvement in the volume trend and customer traffic remaining at 2Q17 levels. Though performance was affected by food deflation, it continues to be leveraged by non-food categories as a result of sales initiatives, especially in mobile, general merchandise, home appliance and apparel categories.
– Solid growth of 25.2%, supported by the good performance of new stores and the same-store sales growth of 7.7%, despite the intense effects from deflation on food products in the quarter (Household food inflation from 16.3% on 3Q16 to -4.5% on 3Q17) and the strong comparison base;
– Anticipating this deflationary scenario, commercial actions were implemented at the banner, which included developing new categories, resulting in one of the best combined performances of volume and customer traffic of recent quarters;;
– Converted stores continued to deliver sales growth of around 3.0x. In 3Q17, five stores were inaugurated, of which four were conversions and one organic.
(*) Multivarejo and Assaí: growth above the industry average based on data from Nielsen for each.
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