BRASILIA, Oct 13 (Reuters) - Revenue growth at Brazil’s GPA SA slowed in the third quarter as plunging appliance sales in its Via Varejo division offset the fast growth of its cash-and-carry Assai wholesale stores, the company said in a filing on Tuesday.
Net revenue of Brazil’s biggest retailer rose 2.7 percent in the third quarter from a year earlier, slowing from an increase of 5.9 percent in the second quarter. Same-store sales, or revenue at stores open for at least 12 months, dropped 2.6 percent.
Same-store sales grew 3.3 percent for food retail operations but tumbled 24.6 percent at Via Varejo as climbing interest rates and expiring tax breaks hurt demand.
Assai store chain revenues overall rose 22.3 percent compared with a year earlier.
A steep recession in Brazil this year has hampered investor confidence in retailers like GPA, hurt by rising unemployment and inflation. Brazil’s economy is forecast to shrink about 3 percent this year, its sharpest contraction in 25 years.
Reporting by Silvio Cascione; Editing by Chizu Nomiyama and W Simon