The Brazilian supermarket market will see a mix of business closures and consolidation in the coming years, amid the challenges of e-commerce expansion, said this Wednesday (2) the executive president of GPA (Grupo Pão de Açúcar) , Jorge Faisal.
“There will be a lot of adventurers breaking,” said the executive during a Credit Suisse event broadcast over the internet.
Faisal said that e-commerce sales in general have tripled in the almost two years of the pandemic, to about 1.5% of the total, and that at GPA this share already reaches 9% of what was sold.
He cited a series of challenges for supermarkets to sell online, such as the delivery of products in increasingly shorter deadlines, which makes the process more expensive and puts pressure on margins.
But he said that GPA believes it can maintain the same levels of profitability as the physical service, which should be facilitated in part by the fact that the group has around 800 stores across the country, which can be used as distribution centers. In addition, he mentioned a better distribution of employees between channels, which have peaks of movement on different days and times.
Faisal predicted that ecommerce sales at GPA could even quintuple over the next four to five years.
Source: Folha
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