GPA postpones strategical actions to second semester due to the pandemic

The company maintains investments of R$1.8 billion for the year and speeds up initiatives for digital operation

GPA has decided to postpone all store conversions, reforms and the opening of new points of sale to this year’s second semester due to the Coronavirus pandemic. However, the company is keeping the strategy designed for the long term with an investment forecast of R$ 1.8 billion in 2020, including 70 new stores, being 50 of them according to the Minuto Pão de Açúcar proximity-to-market model.

According to GPA’s CEO, Peter Estermann, there is also a plan of converting 15 Pão de Açúcar stores into the generation 7 model, as well as 50 supermarkets that will start operating on Mercado Extra store model. Changes also will take place in another 10 Extra hypermarkets that will be converted into Assaí stores, while 10 points of sale will be commercialized or closed.

According to Mr. Estermann, the pandemic has expedited the Digital initiatives process after the chain’s food e-commerce sales grow 82% in the first quarter of the year. “We are expecting that this will remain the preferred way of buying, even after the social isolation period ends”, the President of GPA said. 

Regarding the investments in digital operations, the president of GPA highlighted plans for the third quarter of 2020 that includes the launching of a marketplace. On the other hand, the company plans to recover more than R$ 3 billion negotiating assets and interrupting supermarket operations in Latin American countries as Argentina and Uruguay.