Carrefour Puts Nacional and Bompreço up for Sale

Carrefour Puts Nacional and Bompreço up for Sale
Photo: Shutterstock 24.10.2024 170

Retailer reports unaudited Q3 results with a 4.8% increase in gross sales in Brazil, reaching R$29.5bn (approx. $5 billion).

Carrefour is in negotiations to sell all stores under its Nacional brand, which are concentrated in Brazil’s southern region, as well as the remaining Bompreço stores in the Northeast, sources familiar with the matter told Pipeline, Valor’s business news website. The retailer has hired Bradesco BBI to advise on the negotiations.

In total, 65 stores are up for sale, including those under both banners, some of which include real estate owned by Carrefour. Together, these stores generate approximately R$1.5 billion in revenue.

The majority of the stores are located in Rio Grande do Sul, where four local groups and a new market entrant are in discussions to acquire the 39 Nacional units. In Paraná, another eight stores are expected to be sold to a local player.

As for Bompreço, which concentrates operations in the Northeast region, there are still 18 stores, most of which include the properties in the negotiations. Carrefour had previously sold part of the Bompreço network to Grupo Mateus, which acquired 10 stores two years ago. The retailer also sold four stores in the South to Asun and Grupo Pereira as part of the BIG package acquired from Advent.

On Tuesday, Carrefour announced it had signed an agreement with Guardian Real Estate (GARE11), a real estate investment fund managed by Guardian Gestora, for the sale of 15 properties where Carrefour or its affiliates operate Atacadão stores. The deal is valued at R$725 million.

Under the terms of the agreement, Carrefour Brasil will enter into sale-leaseback contracts for these properties, with an initial lease term of 13 years, renewable in additional five-year periods, ensuring the continuity of its operations. Monthly rent expenses for these properties will be approximately R$4.8 million.

The transaction is subject to standard conditions, including approval from the antitrust watchdog CADE. Carrefour expects the deal to close within the 2024 fiscal year. 

“The transaction aligns with Carrefour Brasil’s strategy of unlocking value from its real estate portfolio, focusing on asset monetization, maximizing returns for shareholders, and optimizing capital allocation,” 

the company said in a statement.

The group is also considering other deals involving its remaining real estate assets.

Carrefour also reported that its gross sales in Brazil rose by 4.8% in the third quarter compared to the same period last year, reaching R$29.5 billion, according to unaudited figures. In the same comparison, gross merchandise value (GMV) from online sales increased by 21% to R$3 billion.

In the cash-and-carry segment, gross sales totaled R$21.4 billion, up 8.3% year-over-year. In contrast, gross sales in the retail segment fell 7.9% to R$6.4 billion, due to a 22% reduction in sales area after 18 retail stores were converted into Atacadão and Sam’s Club stores, and the closure of 126 retail stores over the past 12 months.

For Sam’s Club, gross sales reached R$1.8 billion in the third quarter, a 16.9% year-over-year increase. Active club members also grew by 35.1% annually, with membership reaching 3.5 million by the end of the quarter.

By the end of September, the group operated 1,041 stores.

Source: Valor International

food markets  Brazil 

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