Brazilian cash-and-carry chain Assaí Atacadista reported a 12.9% increase in net sales to BRL 35.1 billion (EUR 5.97 billion) for the first half of its fiscal year.

The São Paulo-based group said its improved performance – an additional 4 billion Brazilian reals (680 million euros) compared to the previous year – was due to the newly remodeled stores as well as a 2.9% increase in sales in existing stores.

Net sales for the quarter increased by 11.8% to BRL 17.8 billion (EUR 3.03 billion), contributing to a reduction in debt to 3.65 times.

Strategic locations

Assaí Atacadista operates a membership club system similar to that of Costco Wholesale in the United States. Since 2021, the company has acquired a number of strategic locations in and around densely populated cities, increasing its number of stores from 212 at the end of 2021 to 293 today.

In addition, butcher’s counters, delicatessens and wine cellars have been introduced in recent years and are now present in 80% of stores.

“Improved profitability”

“We closed June with new stores, improved profitability and reduced debt, further consolidating our nationwide presence,” commented Belmiro Gomes, CEO of Assaí. “Assaí is now present in one in four Brazilian households and we plan to continue offering competitive prices with modern and innovative stores, strengthening our leadership position in the Brazilian Cash & Carry market.”

In the second half of the year, Assaí plans to open ten more stores and have 300 stores by the end of the year. At the same time, the company wants to reduce its debt ratio to below 3.2 and “reaffirm its commitment to sustainable growth and value creation for shareholders,” it says.

In addition, the company will continue to expand its app “Meu Assaí”, which has 14 million registered users, an increase of one million in the last quarter.