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In the crisis, retail giants are closing more than 750 stores;  See ranking

In the crisis, retail giants are closing more than 750 stores; See ranking

Spanish group day It easily tops the list of retail companies that have announced the closure of major stores in the country. Last week, the chain reported that it would close 343 supermarkets and three distribution centers in Brazil. This number is equivalent to double the 159 points of sale closed by Americanas, which has been experiencing a deep crisis since January 2023.

In addition to the two companies, other national retail giants have also promoted – or said they will promote – aggressive reductions in their physical structures. The list includes, for example, Carrefour (123 establishments), Lojas Marissa (91), and Casas Bahia (38, as of the third quarter of 2023).

List of the largest closed stores in the country

Reed Zia – 343

Americans – 159

Carrefour – 123

Marissa – 91

Casas Bahia – 38

Although all the companies on the list are part of the same sector – retail – and have faced common problems in recent years – such as the pandemic, followed by rampant inflation, monetary tightening and rising defaults – the massive store closings are occurring due to various reasons. . .

In the opinion of Eduardo Terra, President of the Brazilian Society of Retail and Consumerism (SBVC), in the case of supermarkets, a common obstacle to good positive results of traditional chains was the growth of cash and carry.

The attack progressed

According to a report by BTG Pactual, released in February this year, this combination of wholesale and retail at a single point of sale increased its penetration among Brazilian consumers from 62% to 73% between 2019 and 2023. Today, it reaches about three-quarters of families.

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However, the Dia network faced specific difficulties, Terra points out. For the expert, in Brazil, the group has gone through several leadership changes and has tried to adopt different formats, which include its own stores, franchises and the original Spanish model, focused on low prices. “Moreover, food retailing in Brazil requires regional regulation, both for perishables and brands, and Dea was unable to do the job,” he says.

Judicial recovery

On Thursday (3/21), the Spanish network submitted a judicial recovery request in Brazil, due to what it called “continuous negative results,” after working for 23 years in the country. The company's debts are estimated at one billion Brazilian reais. The next day, Friday (22), the First Bankruptcy and Judicial Recovery Court of São Paulo accepted the application.

The problems with Amerikans became public in January last year, with the revelation of an accounting fraud estimated at R$25.2 billion. The news is that the total number of closed stores has increased, according to the company's latest report issued to the markets on Thursday (3/21).

At the beginning of the crisis, which began in the second week of January 2023, the chain had 1,880 points of sale. Now, that number is 1,721, and in February it was 1,748. In a year and two months, 159 points of sale were closed.

Unprofitable stores

At Carrefour, the closure of 123 supermarkets was announced when the company's balance sheet was released on February 20. At that time, a net loss of R$565 million was announced for the fourth quarter of 2024. The result represents a significant decline compared to the same period of the previous year, when the network earned a net profit of R$426 million.

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Carrefour reported that the sold or closed stores were not profitable. They include 16 hypermarkets, which are among the most affected by competition from wholesalers, 94 Tododia brand stores, 13 Nacional and Bom Economico stores.

Restructuring

In the case of Marissa and Casas Bahia, both companies are going through a restructuring process. Last week, Marissa released a preview of Q4 results, which indicate sales were down 28% (compared to same stores) in the fourth quarter of 2023, compared to the same period in 2022.

Casas Bahia's balance sheet for the fourth quarter of 2023 was scheduled to be published on March 13, but has been postponed until Monday (3/25). In the third quarter of last year, the latest accounting report available, the company announced a net loss of R$836 million, an amount 311% higher than the amount recorded in the same period of 2022.

Regarding the closure of 38 stores by the third quarter of 2023, the company informed capital Cities By noting that “part of its transformation plan strategy includes reviewing its store network, with the aim of ensuring business continuity and sustainable growth over the long term.”

to update: The initially published number of 89 stores closed by Marisa has been updated to 91 in 2023.