Cencosud Reports Strong Quarterly Growth
The Chile-based retailer Cencosud, which has had a strong presence across Latin America over the past few years , being one of the fastest growing major emerging markets-based retailers, has reported another strong quarter of growth in the quarter to September 2012. At a headline level, group sales increased 18.3% to CLP2,202bn (US$4.58bn) and , particularly encouragingly, same-store sales in Argentina grew by more than 10%.
|Brazil Stands Out But Others Growing Nicely Too|
|Selected Markets Total Mass Grocery Retail Sales (US$bn)|
Despite the various political and economic risks that have been associated with Argentina over the past few years, Cencosud sees it as a really strong opportunity with a lot scope for growth in organised food retailing. More recently, in October 2012, Cencosud has announced it is to acquire the Colombian assets of Carrefour in a deal worth US$2.5bn. The move comes after the firm raise d additional capital through a share sale in Chile and New York (via American depository receipts), which we said at the time was likely to be used to pay off debts and fund further expa nsion. From a position of strength in Chile, Cencosud now has really strong exposure to a number of growth markets across Latin America, including Brazil where it has a lot of room to continue expanding.