Cencosud Sells Brazilian Supermarket Chain for $123 Million

Strategic Divestment Aims to Bolster Performance in Key Markets

Chilean retail giant Cencosud has finalized the sale of its Brazilian supermarket chain, Bretas, for approximately USD 123 million. This significant divestment marks a strategic move to streamline operations and enhance profitability in the South American market.

Bretas Transaction Finalized

The Chilean multinational Cencosud completed the sale of its supermarket chain Bretas in Brazil for a value close to USD 123 million. The operation, managed through its subsidiary Cencosud Brazil Comercial SA, is part of a broader strategy to strengthen its operational structure in that country and increase the profitability of capital for that market.

The business transaction was officially concluded on Friday, July 25, after regulatory requirements from Brazilian authorities were met by both parties. The purchasing company, BH Supermarkets Commerce of Food, now assumes complete control of assets linked to the Bretas brand, signifying a considerable expansion within the state of Minas Gerais.

Initially announced on February 7, the agreement saw the first phase of the transaction executed on May 13 with the handover of 32 stores. The process concluded with the final transfer of the remaining 22 stores, along with service stations, a distribution center, and other vital operational assets.

In total, BH Supermarkets acquired 54 supermarkets, eight service stations, a logistics center, and associated operational contracts. Cencosud reported receiving 716 million reais, equivalent to USD 123.7 million, a figure that may be subject to future adjustments.

The company emphasized that all necessary agreements for the transfer of Bretas stores, service stations, distribution center, and related assets to BH have been signed. This divestment is anticipated to positively impact Cencosud’s operational efficiency in Brazil.

Strategic Realignment and Future Focus

This sale aligns with Cencosud’s strategic plan to concentrate its efforts on markets where its performance is more robust. The company intends to bolster its presence in Argentina, Chile, and Colombia, countries identified as offering greater profitability margins. The exit from Bretas will enable the reallocation of resources to initiatives with higher growth potential in the region.

Cencosud maintains a strong presence in Peru, managing a diverse portfolio of assets including supermarkets, shopping centers, and financial services. Since entering the Peruvian market in 2007 with the acquisition of Wong and Metro, the company has established over 87 stores across various formats in major cities.

The Wong and Metro supermarket brands are crucial retail assets for Cencosud in Peru. Metro operates in both hypermarket and smaller store formats nationwide, while Wong primarily serves residential areas and shopping centers, recognized for its customer service and quality.

Logistical and Commercial Operations

Cencosud Peru manages a significant distribution center in Huachipa, Lima, which supplies both Metro and Wong supermarkets. The company’s logistics coordination ensures that suppliers bear the transportation costs to the stores.

Additionally, the group operates several shopping centers through Cencosud Shopping Centers, including prominent locations like La Molina, Lima Sur, Arequipa Center, and Plaza Camacho, offering over 153,000 square meters of commercial space.

The Bretas supermarket chain offers a wide range of products catering to household needs. Its stores feature fresh foods such as meats, fish, fruits, vegetables, and bakery items, alongside coffee and other essential supplies. These products are noted for their consistent freshness, facilitating regular shopping.

Bretas also stocks non-perishable goods and daily essentials, including cleaning supplies, apparel, beverages, and packaged items. The chain provides both well-known brands and private-label options, allowing customers to choose based on budget and preference. For customer convenience, Bretas offers digital ordering via an app or WhatsApp, with home delivery services available.

Bretas operates across various Brazilian states, with a particular focus on Goiás, adapting its store formats to diverse customer bases. Its offerings range from traditional supermarkets to wholesale and more specialized outlets. The chain has integrated regional products into its catalog, allowing customers to access local flavors and brands.