Chilean Retail Comes Off Boil
Chilean retailers have unveiled aggressive expansion plans for 2011. Bottom line growth and stock performance are not expected to hit last year’s heady pace.
by Taina RosaChilean retailers enjoyed much success in terms of sales and stock price appreciation in 2010. Industry equity analysts and portfolio managers predict that while the sector will definitely grow this year, it is unlikely to reach the scale of last year’s bonanza.
“This year we should see same-store sales increase about 10% for the majority of Chilean retailers that operate department stores,” says Félix Lorenzo, portfolio manager and Chile country head at LarrainVial’s asset management unit. “This is a good rate of growth, but it is below that seen in 2010, when growth was around 15%-20%,” he adds.
Chile’s main retailers are Falabella and Cencosud. As of third quarter 2010, the latest results available, Falabella had revenue of $6.5 billion, up from $5.6 billion in the corresponding period of 2009. Cencosud booked revenue of $3.1 billion in the third quarter of 2010, up...
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