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On a consolidated level, meanwhile, revenues increased 12%, while distribution costs grew 52%.
The Chilean retail giant, Falabella, showed signs of recovery in the third quarter of the year by reporting revenues of US $ 3,154 million, which means an approximate growth of 12% compared to the same period of the previous year.
As reported, the result is explained by growth of 26% and 25% in the department store and home improvement segments in Chile, respectively, accompanied by growth of 40% in supermarkets in Peru.
In terms of profit, there were gains of about US $ 6 million compared to almost US $ 60 million in the same period last year, which translates into a 91% drop. Falabella pointed out that this is explained by the lower contribution of profits from Mallplaza, the banking businesses and Department Stores in Chile.
The general manager of Falabella SA, Gaston Bottazzini, highlighted that “in the challenging context of the pandemic, the trend shown in the second quarter has been reversed, with our retailers’ total sales growing by 24% during the third quarter.”
He added that the reopening of stores and shopping centers in the region allowed a recovery in sales in physical channels, which complemented the rise in online sales.
The retailer obtained an Ebitda of US $ 227 million, which meant a fall of 30.6% compared to the same period of 2019. As detailed, this was due to an increase in administration expenses, a growth in the sale of certain retail categories with a lower margin and a slight deterioration in the financial business, due to a decrease in loans caused by the lower accumulated sales.
Boom online
The company showed a skyrocketing cost for distribution. As of September of the year, it reported costs of US $ 169 million, an increase of 52% over the previous period. The latter would be explained by the higher volume of online sales, which has been boosting the firm in the pandemic scenario.
After announcing that it will transform Falabella.com into its only e-commerce technology platform for the region, the firm published the date on which the platform will reach its customers. He said it will be “at the beginning of 2021, unifying the offer of seven million products from all our retailers and 10,000 sellers.”
In Chile, according to the company, online sales grew 4.5 times, compared to the same period of 2019, with e-commerce traffic that increased 171%, reaching 321 million visits. Home delivery of department stores in the country rose 15 times year-on-year, and the Falabella.com app reached a 40% share of total sales.
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