More supermarkets in Brazil to be closed

More supermarkets in Brazil to be closed

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After Walmart closed down its stores in Brazil, now it is the turn of Pontofrio and Casas Bahia stores to be laid off. If the country’s situation does not improve in near term, new stores will be closed and more layoffs might occur. More than 30 stores of Casas Bahia and Ponto Frio will be closed throughout Brazil, resulting in hundreds of layoffs. Via Retail, a company belonging to Grupo Pão de Açúcar and who is responsible for these units, it has confirmed the closure of these units now in January and the report released brings new stores have closed their work possibilities.

The report released by the GPA but did not specify the location of the stores that will be closed, leaving workers from all over Brazil belonging to these networks in a panic, not knowing whether they will be laid off this month or not. According to the group, before the current crisis the country is experiencing is not being able to continue with all shops open and at this moment it was decided that 30 units would be closed, 28 of Ponto Frio and Casas Bahia 2. At the end of the third quarter of 2015 Via Retail had to prepare a quick restructuring plan to see that the economy gave no sign of improvement and the forecast for 2016 is that the crisis will continue.

In addition to the closure of these 30 stores now in January, the Group will still need to cut new spending and this will make several layoffs in the marketing industry, logistics and reduce other costs of rent and staff to be able to adapt to the new reality of the country. For 2016 the goal is to reach a leaner structure, cutting every possible cost and as far as possible to recover sales, as this will not be an easy task in the face of unemployment and inflation, because with this Brazilian tend to buy each time fewer. Between the months of July to September 2015, Grupo Pão de Açúcar recorded a fall in net revenue of 22.7% compared to the same period in 2014, something extremely worrying and required drastic measures to ensure that in 2016 the fall not is even greater. It has been recorded a drop in sales of around 24.6% and the scenario does not change urgently; new units will be closed in the coming months.

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