Latin America News & Analysis

Mexican retailer Soriana plans to invest MXN4.6bn in 2013, some of which will go towards opening 60 new stores across the country. Focus on Mercado Express Soriana estimates that MXN2,500m will be invested in new store openings, leading to growth of between four and five percent in sales area and expansion to around 240 cities nationwide.  Finance director Aurelio Adán said Soriana planned to...

Walmart de Mexico is to invest around $1.4bn in 2013 in expanding its operations in Mexico and Central America. Store growth across existing and new cities Although Walmart de Mexico did not reveal how many stores would open as a result of this investment, total space growth will be between 7.8% and 8.7%. In Mexico , space growth is forecast to be between 8% and 9%, and around 6% in Centr...

DIA has reported net sales growth of 4.1% for 2012 (+5.2% excluding currency effect), and adjusted EBITDA growth of 8.6% (+9.4% ex. currency effect) Tough comparatives in Q4 Net sales growth in the fourth quarter was 2.4% (+4.4% ex. currency effect).  A tough comparison in Q4 2011, weak business conditions in Turkey and depreciation in the Brazilian and Argentine currencies meant a lower...

Casino has reported a 29.3% increase in trading profit, reflecting the move to take control of GPA in Brazil in 2012. In France, trading profit declined by 8.6%, with a drop in domestic trading margin. However, overall trading margin was up and the group is confident its domestic 'back to basics' commercial plan will kick in and management stressed that its small format exposure lies in its favou...

Colombia's Grupo Éxito has reported operating revenue growth of 15.7% for 2012, and a 3% increase in the fourth quarter.  Growth driven by aggressive expansion Grupo Éxito opened 86 stores during the year, of which 35 were in Colombia, and entered 15 new mid-sized cities.  It is now present in 82 cities in Colombia. E-commerce operations also revealed strong growth during the year, u...

Brazil's Grupo Pão de Açúcar (GPA) has revealed net profit up 36.4% in Q4 2012, against the same period in 2011, and +60.7% for the full year. Strong sales growth in food division A better sales mix, control of expenses and operational improvements across all formats drove growth in operating income both for the consolidated group and within the food business specifically.  In terms of...

Chilean retailer Cencosud is to invest USD731m in 2013, across its five Latin American markets.  Organic expansion across the region The investment will be broken down as follows: Chile - USD242m, the largest proportion of investment, will go towards 17 new supermarkets and various non-food stores Brazil - USD116m will include 15 supermarkets Peru - USD80m, including ...

Walmart de México y Centroamérica has announced changes in its supermarkets and speciality stores divisions, as part of moves to simplify the organisation structure. Long-standing Walmart executives moved to new roles Renzo Casillo has been named executive vice president and CEO of Walmart  Supermarkets in Mexico .  His responsibilities will include the Bodega Aurrerá, Walmart Supercente...

Brazilian drugstore operator Drogaria Onofre has been acquired by the US chain CVS Caremark, for an undisclosed amount.  CVS's first international acquisition This acquisition was hinted at in local US media back in December 2012, when the press said that CVS could buy a stake of around 80% in the Brazilian chain.  CVS's chief executive, Larry Merlo, was quoted: "We view Brazil as an a...

Canadian dollar store operator Dollarama has entered into an agreement to provide sourcing services and business expertise to Central American dollar chain Dollar City. Eight-year agreement offers option to acquire majority share Dollarama will share its business and operational expertise with Dollar City, which is looking to expand its activities in Central America, Colombia, Peru and Ecuado...