Chilean retailer Cencosud said it plans to raise US $255 million by selling 150 million shares at 1,100 pesos (US$1.70) each.  The company currently operates supermarkets and department stores in Argentina, Brazil, Colombia, Chile and Peru, plans to buy the G. Barbosa chain – the fourth largest in Brazil - for US$380 million in stock, plus another US$50 million in debt.

Horst Paulmann, Cencosud's chairman, stated that the company wanted to safeguard itself from any increase in costs in markets where it operates amid global financial crisis. Paulmann expalined further: "Our next step is to make sure the company stays as successful as it is today." G. Barbosa's sales per square meter are higher than those of any other retailer in Brazil. The chain's competitors in Brazil include both Wal-Mart and Carrefour stores.

Cencosud expects G. Barbosa to report sales of US$900 million this year, which would mark a nearly 20% increase over last year. Cencosud believes further growth is possible, since Brazil's food retailing market is fragmented and underdeveloped compared to that of Chile.

The move into Brazil continues an aggressive expansion drive by Cencosud, which in October announced plans to buy Blaisten, which operates home improvement stores in Argentina. During the third quarter 2008, Cencosud opened six new stores and super markets in Chile, totaling approximately 7,500 m². Three supermarkets were opened in Argentina, with a total of 16,000 m². In Brazil the company completed eight new outlets, totaling almost 12,100 m².

See retail overviews of:

• Argentina
• Brazil
• Chile
• Columbia
• Peru