Carrefour acquires 30 Makro stores to expand footprint in Brazil
Category: #retail  By Saipriya Iyer  Date: 2020-02-17
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Carrefour acquires 30 Makro stores to expand footprint in Brazil

Grupo Carrefour Brasil, the Brazilian unit of France’s Carrefour SA, has accelerated the expansion of the Atacadão format by acquiring 30 Cash & Carry stores of Makro Atacadista SA.

The transaction was valuated at 1.95 Bn Reais, which marks a significant move for the company since it obtained Atacadão in 2007. It involves 30 stores, including the real estate of 22 fully owned stores as well as 8 rented stores, and 14 gas stations. These stores have presence in 17 Brazilian states, with sales areas spanning across 165,000 square meters in total.

The gross sales posted by these 30 stores in 2019 was nearly 2.8 billion Reais. These stores will perform crucial functions offering geographic complementarity with Atacadão’s existing 187 stores. The new stores will help Atacadão continue its strong organic growth and presence across 7 stores in Rio de Janeiro and 8 stores in the Northeast region. It also has opened 20 new Atacadão stores in 2019 for organic growth.

During the initial year post the closing of the transaction, the company is planning to convert these stores into its Atacadão banner to gain profitability levels as that of the Atacadão network. Through the platform, clients can obtain Atacadão’s offers and price benefits as well as successful financial services from Grupo Carrefour Brasil. The company is expecting sales to increase by approximately 60%, with an optimized cost structure, through this combined model.

As per the statement made by Alexandre Bompard, Carrefour Group’s CEO & Chairman, the acquisition rightly complements the company’s strong focus on expanding the growth formats in the Brazilian market, in line with the Carrefour 2022 Transformational Plan.

Grupo Carrefour Brasil’s CEO Noël Prioux also stated that the acquisition can help deliver significant growth prospects to Carrefour as well as consolidate and expand Atacadão’s footprint in Brazil. Customary conditions that underline the closing of the transaction include the agreements of the rented properties from the owners as well as CADE’s approval, which is an antitrust authority in Brazil.
 

Source credit:

https://finance.yahoo.com/news/carrefour-group-accelerates-expansion-growing-132700995.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACkIudqF65XLLM3k2b2aubJKEIT3Ua3Wx3E_nRieWv-s1nJFRSCp0_DK4MWPvdwYyMVwbpgT_JSOKzs2BzUT0BNHmEEYEd9tj2TyValrKOyeSDpH6meiIzMSgThR2HcUNZt040PLQpnDHtzNNunANhaH56lr-IzXBMvAYaVa55K6



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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