SALES IN 4Q17 and 2017
Net sales grew 8.2%(1) to R$44.6 billion in 2017
- In 4Q17, revenue reached R$12.5 billion and, despite the deflation in the period(*), grew 6.8%(1) and 3.5%(2) on total and same-store bases, respectively
- Multivarejo and Assaí registered continuous gains in market share(**) during the quarter
- Accelerated pace of store conversions: 8 Extra stores converted in the quarter, bringing total store conversions in 2017 to 15
- In 4Q17, Assaí accounted for 43.5% of revenue at GPA Food (vs. 36.2% in 4Q16)
– In 2017, net sales totaled R$26.2 billion, with same-store sales up 0.7%(1), notably due to:
• Continued gains in market share(**) in all the measurements carried out by Nielsen during the year, while maintaining its competitive level;
• My Discount Program reached more than 3.7 million active clients in the year, within just 6 months of launch. In the quarter, there was an acceleration of migration from mass to personalized promotions through the app, including a fully digital Black Friday, at Pão de Açúcar. The total loyal customer base rose from about 12 million to 14 million.
– In 4Q17, net sales amounted to R$7.1 billion, with same-store sales declining 0.6%(1). Sales performance was adversely affected by: (i) deflation in food categories(*), especially in Christmas season products; and (ii) the continued migration across channels due to the economic scenario;
– Extra Hiper continued to deliver a good sales performance across all banners, both in the quarter and the year, driven by double-digit growth in non-food categories;
– For the second consecutive quarter, Pão de Açúcar posted growth in sales volume despite being affected by the renovation of 50 stores in the quarter (11 full and 39 light renovations), which represent about 35% of the format‘s sales. In 2018, the banner is continuing with its plan to full renovate around 20 stores.
– In 2017, Assaí posted gross sales of R$20.1 billion, up 28.0%(1), with same-store sales growing 11.4%(2);
– In the quarter, net sales grew R$5.4 billion, reflecting the strong expansion plan and the same-store sales growth of 10.7%(2);
– The effects of food deflation in the period and the strong comparison base of previous year were absorbed by:
• The growth in customer traffic and sales volume resulting from Assaí‘s solid commercial actions;
• The success of the “Anniversary Assaí” campaign in October;
• The successful Black Friday campaign conducted for the first time by the banner, driven by a remarkable performance by the general merchandise category.
– In the quarter, Assaí posted continued market share gains(**) without any change in its competitiveness level;
– In the quarter, 11 stores were opened (8 conversions and 3 organic), bringing the total store openings in the year to 20.
– Extra stores converted registered sales growth of about 2.5 times.
(*) The food at home component of the IPCA inflation index dropped from 11.9% in 4Q16 to -5.1% in 4Q17
(**) Multivarejo and Assaí: growth above the industry average according to Nielsen data for each segment. For Multivarejo SSS criterion.
(1) In 4Q17, the adjustment was -30 bps at GPA Food, with -70 bps at Multivarejo and -20 bps at Assaí. In 2017, the adjustment was -50 bps at GPA Food, with -70 bps at Multivarejo and -50 bps at Assaí.
(2) Includes the stores converted from Extra Hiper to Assaí, which in 4Q17 contributed 210 bps to Food and 530 bps to Assaí. In 2017, this contribution was 110 bps and 310 bps, respectively.
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