Chile: Falabella reports slowed growth

The Chilean retail group Falabella has been feeling the effects of the currency turbulences in South America on its home improvement business. In the second quarter, the DIY division made sales of CLP 952.074 bn (€1,209 bn), i.e. only 0.8% more than in the same quarter last year. On their home market in Chile, division sales declined by 3.5% to CLP 529.457 bn (€672m), same store sales by 4.2%. Figures from Argentina appear drastic: -16.2% with sales of CLP 27.784 bn (€35m). There was a plus of 37.3% in local currency, for which the high rate of inflation is primarily responsible, and an increase in same store sales of 13.5%. In Brazil, the group raised its home improvement sales by 18.1% (in local currency: 16.8%; same store sales 18.2%) to CLP 48.176 bn (€61m). The company attributes growth to factors such as better sales in the remodelled Sodimac Dicico stores. Sales in Colombia, the second largest market for the DIY division, grew by 5.9% to CLP 191.126 bn (€243m; in local currency: 10.8%; same store sales 8.1%). There was a plus of 10.1% to CLP 155.531 bn (€198m; in local currency: 1.8%; same store sales 3.4%) in Peru.

 

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