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.
Chilean 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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