The following is a study of one sector of the economy in Latin America that is booming today beginning with the four foreign multinationals being present there through various investments comprising heavy and important tentacles throughout the emerging region. Moreover, adding 27 domestic players to the study, it is important to highlight that retail properties represent one key element of commercial activity in an emerging region like this one containing commercial properties estimated at a value hovering $ 1.5 trillion between office, hotel, retail, industrial and apartments for rent space.
Walgreens Boots Alliance Corporation: this massive American multinational after merging with British titan Boots Alliance PLC about a handful of years ago bought one of the biggest pharmacy store chains in Latin America based then in Chile and known as Farmacias Ahumada S.A. or FASA while holding today a prominent presence in Mexico besides Chile. As a consequence, Walgreen Boots Alliance wholly owns the pharmacy store chain in Mexico known as Farmacias Benavides S.A. de C.V. containing around 1,000 pharmacies dispersed throughout the whole Mexican geography. In addition, the multinational pharmacy store chain owns approximately 500 pharmacies in Chile alone under its wholly-owned and namesake subsidiary widely known as Farmacias Ahumada.
Walmart Corporation: this heavyweight American brick and mortar retailer has tentacles dispersed widely throughout Latin American after three big acquisitions as well as smaller acquisitions of various supermarket chains in Brazil and one acquisition in Argentina. The three big acquisitions include Cifra S.A. de C.V. in Mexico, a transaction that represents the initial foray of Walmart throughout the emerging region more than a decade ago, Distribución y Servicio S.A. in Chile and Central American Retail Holding Company Limited in Central America. The latter constitutes an amalgamated entity combining the local operations of Ahold Delhaize N.V. with that of the Paiz family in Guatemala and the Uribe family in Costa Rica. Consequently, despite expansion in Brazil after operating there under several local banners while containing close to 600 grocery stores through a handful of previous acquisitions made, Walmart leads the grocer market comfortably in Mexico, Central America and Chile. In fact, in Mexico alone, the massive American multinational contains some 2,300 stores between various formats, approximately 700 grocery stores throughout Central America operating there under several local banners and around 400 stores in Chile between various formats again in addition to a credit company and real estate operations in the form of indoor malls. Moreover, just recently Walmart combined its local operations in Mexico and Central America under its publicly-traded subsidiary in Mexico known today as Walmart de México y Centroamérica S.A.B. de C.V. Accordingly, this company is nowadays the largest retailer in Latin America reporting over $ 40 billion a year in sales while being the most important operation Walmart has outside its domestic home market in the US. Likewise, the unit is also responsible for close to 10% the total consolidated sales Walmart currently reports annually north of $ 400 billion a year letting the latter keep its status as the biggest company worldwide in terms of sales as well as by the number of associates on its payroll.
Casino-Guichard-Perrachon S.A.: this prominent French multinational and largest retailer worldwide in terms of number of stores dominates the market in both Colombia and Brazil. In fact, in Colombia the retailer controls Almacenes Éxito S.A. trading there and reporting over $ 8 billion a year in sales while containing around 800 grocery stores throughout the nation as well as possessing real estate operations in the form of indoor malls. In Brazil, on the other hand, the retailer controls Companhia Brasileira de Distribuição S.A. trading there as well as an ADR on the NYSE under the ticker symbol (CBD). Likewise, the latter reports close to $ 20 billion a year in consolidated sales now while possessing over 1,200 grocery stores across the nation through several local and popular banners including the flagship known as “Pão de Açúcar”. In addition, Companhia Brasileira de Distribuição controls the retailer Via Varejo S.A. trading in Brazil as well and specialized in the sale of home appliances, consumer electronics, furniture and computers while containing more than 900 stores with presence nationally. Moreover, the latter is an amalgamated entity combining the local operations of Companhia Brasileira de Distribuição in that segment of the industry with that of the Klein family and Lily Safra. Accordingly, the combination comes after the purchase of the emblematic Casas Bahia S.A. and Ponto Frío S.A. over a handful of years ago upon approval by Samuel Klein before his passing in 2014, a holocaust survivor from Poland who emigrated to Brazil after the war and considered to be the Sam Walton of Brazil. Casino-Guichard-Perrachon has a solid presence in Argentina and Uruguay as well.
Carrefour S.A.: this massive French multinational has been retreating lately from the region after selling its local operations in Colombia to Cencosud S.A. comprising some 100 stores throughout the Colombian territory. Its local operations in Chile were also sold off after maintaining a small presence there. Nevertheless, the retailer counts some 300 grocery stores in Brazil as well as close to 600 grocery stores in Argentina alone through wholly-owned subsidiaries in each of these two countries.
Lojas Americana S.A.: massive Brazilian discounter trading in Brazil while possessing more than 500 stores throughout the nation including beneficial control of the leading Brazilian e-commerce company known as B2W Companhia Digital S.A. Likewise, Lojas Americana reports more than $ 5 billion a year in consolidated sales today. Moreover, the retailer is controlled by 3G Capital Corporation, the closely-held investment holding concern based in the US and controlled by the trio of high-profile Brazilian billionaire partners consisting of Jorge Paulo Lemann, Marcel Hermann Telles and Carlos Alberto Sicupira. The trio is famous for having engineered one of the biggest mergers in history tying up the two biggest brewers worldwide recently consisting of Anheuser-Busch InBev N.V. and SABMiller PLC, a transaction of $ 107 billion in cash and stock when the deal closed. In addition, the trio is also responsible for the recent tie up of H.J. Heinz Company Corporation and Kraft Foods Group Corporation while bringing on board as a partner the legendary Warren Buffett after having befriended him for some time.
Lojas Renner S.A.: second biggest department store chain in Brazil in terms of number of stores and specialized in the sale of clothing. Initially controlled by the Renner family of Brazil, JC Penney Corporation bought the company two decades ago and later sold it to several domestic and international investors piece by piece about a decade ago. Today, Lojas Renner is a listed Brazilian blue chip widely-held in Brazil while containing around 500 stores selling clothing under various formats and reporting more than $ 2 billion a year in sales.
Havan Lojas de Departamentos Limitada: expanding and privately-held department store chain in Brazil containing over 100 stores throughout the entire Brazilian territory. The company belongs in its entirety to Luciano Hang and makes over $ 2 billion a year in sales.
Magazine Luiza S.A.: prominent department store behemoth in Brazil competing neck and neck with Via Varejo S.A. after holding over 800 stores nationally selling a wide assortment of goods such as clothing and cosmetics in addition to home appliances, consumer electronics, furniture and massive e-commerce operations. Trading in Brazil after being a blue chip there, the company is controlled by various members of the founding family through ownership of a controlling block of stock including the matriarch Luiza Helena Trajano who currently chairs the board. The company makes over $ 4 billion a year in sales.
Lojas Marisa S.A.: expanding department store chain in Brazil selling clothing and lingerie items geared towards the needs of women. The company trades in Brazil and is controlled by various members of the Goldfarb family. Moreover, the company makes over $ 1 billion a year in sales.
Lojas Riachuelo S.A.: important department store chain in Brazil trading there and focused on clothing. Moreover, the company is controlled by billionaire Nevaldo Rocha through ownership of the fashion maker known as Grupo Guararapes Confecções S.A. while currently reporting over $ 1 billion a year in sales.
Companhia Zaffari Comércio e Indústria Limitada: privately-held Brazilian retail champion focused on upscale supermarkets and hypermarkets in the State of São Paulo and the South Region of Brazil while developing and operating indoor malls on the side. The company was founded in 1935 by the late Francisco José Zaffari with the help of his wife then and today descendants of the deceased couple are a tight-knit family who remain low-profile owners of the company in full. The company makes close to $ 3 billion a year in sales and has over 15,000 associates on its payroll.
Grupo Mateus S.A.: newcomer and expanding closely-held supermarket chain with close to 200 groceries stores dispersed throughout the entire Brazilian landscape after covering all the regions. Founded in the state of Maranhão back in the early 1980s by Brazilian entrepreneur Ilson Mateus Rodrigues with the help of his ex-wife and immediate family, the company is the fastest growing independent grocery store operator nationwide currently employing over 20,000 Brazilian nationals.
Raia Drogasil S.A.: biggest pharmacy store chain in Brazil. Although widely-held in Brazil after trading there, Brazilian entrepreneur Carlos Pires Oliveira Días owns about 26% of the company and controls it as well through super-voting common stock. Moreover, the company comprises around 1,500 pharmacies under a handful of banners throughout Brazil and makes more than $ 3 billion a year in sales.
Grupo Sanborns S.A. de C.V.: sizable retailer trading in Mexico while being controlled by Grupo Carso S.A.B. de C.V. after being responsible for half the consolidated sales the latter reports annually of around $ 10 billion. Likewise, the latter is also a key component of Mexico’s Carlos Slim’s empire gathering a collection of several strategic non-core investments. Moreover, Grupo Sanborns contains today over 400 stores dispersed throughout Mexico operating there under various formats including discount stores, department stores, music stores, restaurants and coffee shops. The department store format alone counts nearly 100 locations and the unit operates using the “SEARS” name under a franchise agreement.
Grupo Elektra S.A.B. de C.V.: powerful brand comprising some 700 stores in Mexico alone as well as another 400 stores dispersed in various countries in Hispanic America after having expanded throughout neighboring Central America first. Moreover, the unit is a publicly-traded subsidiary of Grupo Salinas S.A. de C.V. after being responsible for two thirds the consolidated sales the latter reports annually of around $ 10 billion. In addition, the unit is also responsible for the proliferation of credit in Mexico after introducing payment plans to lower socioeconomic segments of the market in Mexico previously ignored by the Mexican business establishment in order to increase volume selling home appliances, consumer electronics, furniture, computers and motorcycles under several banners.
Organización Soriana S.A.B. de C.V.: largest domestic-based grocer in Mexico trading there while being controlled by the related first cousins consisting of the Martín Bringas and Martín Soberón families. Moreover, the supermarket chain contains today approximately 1,000 grocery stores throughout the entire Mexican territory under various banners after acquiring the grocery business of Grupo Gigante S.A.B. de C.V. as well as buying in its entirety Comercial Mexicana S.A. de C.V. during a well-publicized takeover in the Mexican press. The company reports approximately $ 10 billion a year in sales.
El Puerto de Liverpool S.A.B. de C.V.: biggest department store chain in Mexico trading there with over 200 department stores scattered throughout the entire Mexican territory including the ownership and operation of 20 indoor malls dispersed nationwide. Founded in the mid-1800s by a French immigrant in Mexico, the Frenchman took the name of the seaport in Europe supplying its dry goods store across the Atlantic Ocean in the New World. In addition, the iconic company has undergone an expansion recently acquiring 25% of the common stock in Chile of department store chain Ripley S.A. as well as buying a half economic interest in the single largest discounter in Central America known as the Unicomer Group. Moreover, based in El Salvador while being privately-held and domiciled off-shore in the Caribbean as Regal Forest Company Limited, the Unicomer Group is a heavyweight discounter with a solid presence in various countries across Hispanic America as well as the Caribbean while having around 1,000 discount stores in its portfolio. Another important investment El Puerto de Liverpool made in 2016 was the acquisition of Walmart’s Mexican department store unit in full at a price tag of $ 840 million in cash while adding over 100 Suburbia-branded department stores all at once throughout the republic. Altogether after these acquisitions, El Puerto de Liverpool reports total consolidated sales expected to reach $ 7 billion this year. The company is controlled by the Michel family of Mexico.
Grupo Comercial Chedraui S.A.B. de C.V.: newcomer and expanding supermarket chain in Mexico. Trading in Mexico while being controlled by the brothers Alfredo and José Antonio Chedraui Obeso, the retailer contains today over 250 grocery stores scattered nationwide after being the third biggest supermarket chain there trailing only Walmart and Organización Soriana. Moreover, the company reports approximately $ 4 billion a year in sales.
Coppel S.A. de C.V.: single largest discounter in Mexico containing around 1,200 discount stores throughout the whole Mexican geography. Moreover, being privately-held while owned in its entirety by the Coppel Luken brothers, the retailer makes approximately $ 7 billion a year in sales and includes a commercial bank supplying credit as part of its product package.
Corporativo Fragua S.A.B. de C.V.: dominant pharmacy store chain colossus in Mexico. Operating under the banner “Farmacias Guadalajara”, the business boasts over 1,500 pharmacies across Mexico and its controlled by Mexican tycoon Javier Arroyo Chávez after trading in Mexico.
S.A.C.I. Falabella: prominent multi-format department store juggernaut containing at least 100 stores in its core business alone while being a Chilean multinational maintaining a solid presence across a handful of South American nations. Founded as a tailor shop in the late 1800s by an Italian immigrant while trading in Chile today after being the most valuable blue chip there, the retailer is controlled by six branches of the extended Solari clan who retain over 51% of the company’s stock. Moreover, the company reports sales reaching $ 15 billion a year while having a strong bottom line of around $ 1 billion a year on average and including indoor mall operations as well as a commercial bank supplying credit as part of its product package. In addition, the company owns the biggest home-improvement supply store chain in Latin America holding more than 200 stores presently, under the banner “Sodimac Homecenter”, after acquiring the namesake Chilean company outright through issuing new common shares over a decade ago. Falabella currently employs over 100,000 associates.
Cencosud S.A.: prominent multi-format supermarket chain colossus and expanding multinational trading in Chile as well as an ADR on the NYSE, under the ticker symbol (CNCO), while being controlled by German immigrant and naturalized Chilean Horst Paulmann Kemna. Moreover, the retailer underwent an aggressive expansion in the last two decades employing leverage to swallow different players within the industry including the local operations of what is now Ahold Delhaize N.V. in both Chile and Argentina, the Chilean department store chain known as Almacenes París S.A., the operation Carrefour S.A. had in Colombia, the grocery business the Wong family had in Peru and about a handful of smaller acquisitions in Brazil. As a consequence, the company contains today approximately 1,000 grocery stores throughout South America being a formidable player in its core business and reporting sales that exceed $ 20 billion a year while giving direct employment to a sizable workforce that now counts around 150,000 employees. In addition, the company possesses both indoor and strip mall operations as well as a commercial bank.
SMU S.A.: expanding and publicly-traded multi-format supermarket chain in Chile containing some 200 stores in its core business alone operating there under one of the oldest banners around the country known as “Unimarc”. The other formats include convenience stores, home-improvement supply stores and warehouse clubs. Moreover, the retailer is the third largest supermarket chain in Chile trailing only Walmart and Cencosud while making more than $ 2 billion a year in sales. In addition, the company is controlled by banker and high-profile Chilean billionaire Álvaro Saieh Bendeck.
Ripley S.A.: newcomer publicly-traded department store chain in Chile. The company is controlled by the Calderón family who currently hold 51% of the stock. In addition, the company makes over $ 2 billion a year in sales.
Coto C.I.C.S.A.: important domestic-based grocer in Argentina with over 100 grocery stores. Similarly, the company owns and operates a handful of indoor malls in addition to other operations including a red meat wholesaler supplying restaurants along with a ranching business as well as a slaughterhouse and possession of 30 butcher shops. Moreover, the company remains private and makes more than $ 2 billion a year in sales. In addition, the company belongs in its entirety to prominent Argentine businessman Alfredo Coto.
Importadora y Exportadora de la Patagonia S.A.: doing business under the banner “La Anónima”, the closely-held grocery store operator boasts over 150 grocery stores located in the Patagonia Region of the Argentine Republic. The company is owned entirely by Argentine businessman Federico Braun who also owns a sizable listed shareholding in Grupo Financiero Galicia S.A. after being a member of the controlling trio consisting of important Argentine banker Eduardo Escasany, Argentine rancher Abel Ayerza and Mr. Braun himself.
Tiendas Industriales Asociadas S.A.: expanding supermarket chain with some 450 grocery stores overall under several banners including the flagship known as “Tía” holding a solid presence in Ecuador and Uruguay. Moreover, the retailer leads the grocer market in both Ecuador and Uruguay while remaining private and controlled by Francisco de Narváez and Gustavo Andrés Deutsch, both from Argentina. In addition, the company makes around $ 4 billion a year in sales.
Almacenes Simán S.A. de C.V.: single largest department store chain throughout Central America holding 14 department stores in its portfolio along with the ownership and operation of two indoor malls. In addition, the company owns and operates 26 stores managed by fashion maker and retail giant Inditex S.A. from Spain under a franchise agreement to sell its branded clothing goods covering the entire Central American region. Moreover, the company remains private after belonging in its entirety to the family of current presidential candidate in El Salvador Javier Simán while making more than $ 1 billion a year in sales.
Supermercados Súper Selectos S.A. de C.V.: leading grocery store operator in El Salvador after operating nearly 100 grocery stores. The supermarket chain was founded by the late Daniel Calleja, a Spanish immigrant in El Salvador and deceased grandfather of Carlos Calleja. The latter retains ownership of the closely-held company in full and is active in politics as well after presently being a presidential candidate in El Salvador while holding an undergraduate degree in Liberal Arts from Middlebury College and an MBA from the Leonard N. Stern School of Business at NYU.
Corporación Favorita C.A.: publicly-traded national champion in Ecuador. The conglomerate comprises ownership and operation of indoor malls, a ranching business, meatpacking operations, baking operations and a diverse assortment of more than 200 stores between grocery stores, discount stores, home-improvement supply stores, furniture stores, gift shops, home appliance along with consumer electronic and computer stores. Moreover, the company reports close to $ 3 billion a year in sales and is controlled by prominent Ecuadorean entrepreneur Andrew Wright.
Importadora Ricamar S.A.: doing business under the banner “Super 99”, the business boasts around 50 grocery stores covering the whole Panamanian landscape. The company remains private and belongs in its entirety to former Panamanian president Ricardo Martinelli after being his crown-jewel, accounting for over half of his fortune and leading the market today in Panama ahead of Walmart Corporation. Currently, Walmart has three stones in its shoes in Central America consisting of Súper Selectos in El Salvador, Super 99 in Panama and Supermercados La Colonia in Honduras. The latter is part of the conglomerate in Honduras established by Camilo Alejandro Atala Faraj, the wealthiest Honduran entrepreneur according to Forbes with additional activities of incursion spanning banking, insurance, real estate development, engineering contracting, hospitality, discount stores and department stores.