Unidentified Company Representative: When it comes to same-store sales. We still have some impacts, and it is important to understand the value proposition that we’re working on very strongly to once again regain our premium customers, something that we have to go back to doing that we have begun to do, and the NPS is proof of that, is a value proposition, especially for Pao de Acucar, of becoming a premium food retail for Brazil. Now in that context, there is a transition, of course, we’re reinforcing this. This year, we began investing in the top 30 stores, as we call them. This model has been very positive. They represent 7% above the average sales on average, 1 EBITDA point above the average, and were now moving on towards the top 50 stores.
We have that expansion until the end of March. We’re working on a model that we call the premium representing the 15 most premium stores in the organization, further expanding our value proposition, not only for the brick-and-mortar store, reinforcing the brick-and-mortar store, working on the food hall concept, where we offer ready-to-eat, ready-to-go concept with greater volumes than we used to have and strengthening the presence of perishables, coffee, pizzas, hamburgers, pasta. We’re moving towards new services for our customers. Despite all of this, an important point, and here we have to be convinced of the work we’re doing without shortening anything. We truly have to bring back our customers and the vision of customer — our premium customers, so they return to the Pao de Acucar stores.
And, of course, enjoy the premium value proposition that had suffered a deterioration. Very shortly, we will have news for you regarding an upgrade in the Mais program with a segmentation of customers, a segmentation in our customer standards to further engage these customers, a value proposition of the Pao de Acucar card, strengthening and awarding consumption in store, not only awarding those that consume outside of the Pao de Acucar. This is something we changed in the last quarter and beginning of this quarter to make sure that it will be worthwhile buying with the Pao de Acucar card, especially buying on the site, and in Pao de Acucar we have seen an increase of the card share within our stores, which is very important and strengthening our proximity strategy.
We have observed a growth — a tepid growth perhaps but a constant growth quarter-on-quarter in supermarkets, and we see a double-digit growth in the proximity stores. And what we observe is a more aggressive growth in the Extra banner supermarket. They’re more sensitive to prices, and this is where we have worked with a commercial and operational partnership with a very strong return. We still have to work with a Compre Bem banner. We carried out a test at the end of last year, beginning of this year of changing for Compre Bem supermarkets in the coast of Sao Paulo to Extra stores. We need more time to prove our thesis here. Perhaps we can bring together that banner and strengthen the banner Extra. But for the Pao de Acucar value proposition, we have to stick to our strategy, although growth has not appeared at the speed that we wished it would.
Interpreted Regarding G7, I do understand your point. But here I do not want to create distractions in the organization to stop what they’re doing to create a new model. The G7 model, well, it has proved to be a winning model. They were carrying out a number of adjustments together with the commercial team, the store concept team, and they are broadening the presence of perishable goods in the store. They’re gaining more — they’re more notorious. This is not a moment to launch a new store model while we still have 40% to do. We’re going to conclude what we have. We will strengthen our current model. And well, we can think about a new model as soon as this is necessary. But we believe that this will not be necessary for the time being.
Irma Sgarz: But can you tell me how much of your sales, your G7, is accountable for?
Unidentified Company Representative: Up to 60% — almost 70%. Yes. And we expect 100% until the end of the year, 60% of sales.
Operator: The next question from Iago Souza, sell side analyst from Genial Investimentos in Portuguese.
Iago Souza: I would like to explore your perspective for Easter. With the events of Americanas in Q1, do you see that there is an opportunity to capture more share during this year? And what are your prospects for this year, if you could give us some flavor regarding this number? And thinking about margin, how do you intend to work on Easter?
Unidentified Company Representative: Well, Easter, I would say that you have a point. We’ve discussed this strongly since the World Cup, we have discussed a lot the theme of seasonality, how the consumer’s behavior has adapted to the seasonality. What we observed during the World Cup wasn’t the update that we expected because of the proximity to Black Friday, seasonality because of Christmas, and what we see more is a evelling field in terms of seasonality, 30 days before the event. Now obviously, you always have the last 10 days that represent a greater impact. Now in this sense, well, we are preparing ourselves for early Easter that will start in the month of March. All our preparation is being carried out together with the chocolate industries.
Everything regarding fish products that is a great strength of Pao de Acucar and, obviously, fresh fish and also codfish where we already have everything planned for the entire month. And this will provide us the opportunity not to guarantee not only to capture the seasonality, not only exclusively depending on the last 10 days that come before the event, but also to better level our margin because as you’re able to sell more during the preseason, obviously, you pull out of the seasonality with lower volume, with a less need of marking down prices. Now speaking specifically about Easter this year, what we are doing together with the industry, yes, we have been able to acquire additional volume than what traditionally we have closely followed the industry.
Now everything regarding chocolates, chocolate bars, everything connected to that category as a whole has surprised us positively. Yesterday, we were seeing these numbers, for example, candies have grown by double digits, something surprising. And this is because of the adjustments that we carried out on the G7 stores. We put all the sweets in the front. This is, of course, close to the , the last point of contact where the customer €“ where the impulse purchase takes place, and we’ve seen a positive response in sales and in margins for this category. So yes, stores are being prepared now during the first week of o March. And for the first time, we are going to carry out encompassing test in the proximity stores. Traditionally, we don’t explore the proximity stores because of physical space during Easter, and we do believe that here we can offer a more reduced assortment, but more relevant in these stores, and we’re going to carry out this test this year, and we want to be positively surprised due to the work and the engagement of the entire team.
Operator: Our Q&A session has come to an end. And now I would like to hand it over back to Marcelo Pimentel for his final remarks.
Marcelo Pimentel: Thank you very much. I thank you once again for participating. I would like to that I’m reassured with all the progress carried out last year. We are aligned with the turnaround process that we started in April. We’ve recorded important progress like the recovery of growth, our EBITDA has also improved. The expansion plan and the commitment of opening over 100 stores this year, in addition to the digital growth will surpass double digits. There is a lot to do still there is no doubt. Nonetheless, we are committed to continue developing our strategy to recover the GPA that we want to be a supermarket company, a reference in the premium segment with a sustainable model. We’ve worked with discipline to overcome obstacles. And I am sure that we’re on the right path. I would also like to thank the dedication of all the team that has been extremely important for our evolution process within GPA. Thank you very much, and have an excellent day.
Operator: Our video conference call has come to an end. The Investor Relations department is at your disposal to answer any further questions. Thank you very much to all participants and have a very good day.
