Colombiano Éxito will invest about US$250 million between 2023 and 2024

The Colombian retail conglomerate Success Group will invest around US$250 million between this and next year, mainly focused on opening new stores in different formats, as well as in shopping centers and technology, the president of the firm said on Wednesday.

Éxito entered the New York Stock Exchange at the end of August through American Depositary Shares (ADRs), joining the trading of shares in the markets of Brazil and Colombia.

“This year we are going to invest approximately US$ 125 million, of which US$ 100 million in Colombia, approximately US$ 20 million in Uruguay and 5 million in Argentina“, the president of Success, Carlos Mario Giraldo.

The investment plan includes expansion with new wholesale warehouses and hypermarkets, while it will enter intermediate cities with the Rappi delivery application with the format Turboattention in less than 10 minutes.

“Additionally, there is a very important investment in the shopping center business,” he claimed Giraldo. “That means that for next year in principle we should have a similar investment in dollars to this year.”

The registration of shares of Success in international markets occurred after GPA spun off around 83% of its stake in Éxito through a capital reduction, which led the Colombian group to raise the float of outstanding shares to 53%, from a level of 3.4% before the operation.

“One of the great medium and long-term objectives of this movement is for the market to give the company a fair valuation. For this, the most important step is to get foreign investors to take positions in Éxito shares.“, said Giraldo.

“The fact that the investor can resort to three stock exchanges (…) is essential”, he concluded.

The net profit of Success It contracted 69.3% in the first semester to 38,934 million pesos (US$ 9.97 million), compared to the same period last year, affected by high interest rates and inflation.