Assaí Adjusts Growth Strategy: Halves New Store Openings For 2025
Date
10/18/2024 1:16:13 AM
(MENAFN- The Rio Times) Assaí, a major Brazilian retailer, has announced changes to its financial and expansion plans for 2025 and 2026. The company will open fewer new stores next year to reduce its financial leverage. This decision follows the approval of Assaí's 2025 strategic plan by its Board of Directors.
The company considered recent increases in the Selic rate and changes in interest rate expectations. These factors directly impact Assaí's debt costs. As a result, the retailer has decided to postpone some new store projects planned for the coming year.
Assaí now expects to open about 10 new stores in 2025 , half of its original plan. The company aims to return to its previous expansion rate in 2026, with approximately 20 new stores. The total investment planned for 2025 ranges from R$1.0 billion to R$1.2 billion ($178.6 million to $214.3 million).
The investment will be distributed as follows:
R$650-750 million ($116.1-133.9 million) for new store openings
R$250-300 million ($44.6-53.6 million) for maintenance and new services in existing stores
R$100-150 million ($17.9-26.8 million) for infrastructure, technology, and innovation projects
Assaí expects its net debt to EBITDA ratio to be around 2.6 times by the end of 2025. The company believes this goal will be achieved through EBITDA growth and reduced net debt resulting from revised investments.
Since 2021, Assaí has opened more than 120 stores, with 64 of these coming from converted hypermarkets. This expansion allowed the company to enter strategic regions in Brazil that were previously inaccessible through organic growth.
Assaí now plans to consolidate its existing store base and focus on financial sustainability. The company notes that these projections may be revised based on new analyses and economic scenarios, with reviews occurring at least annually.
MENAFN18102024007421016031ID1108793868
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.