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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