The Fresh Market expanding under Chilean management
A little over a year after Chilean retailer Cencosud purchased a 67% share of The Fresh Market, the grocery chain is opening a new store in Indiana, pushing its location count to 160 across 22 states, Winsight Grocery Business reports.
In its first U.S. acquisition, Cencosud shelled out $676 million to purchase the share from private-equity firm Apollo Global Management.
Since then, the Chilean firm has continued to expand the grocer’s scope, generating a total financial impact of $75.8 million.
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“In these 12 months, The Fresh Market has contributed with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $210 million and an adjusted EBITDA margin of 10.4% to the company’s consolidated result, exceeding estimates,” Cencosud CEO Matías Videla says in a statement.
The executive shares that the planned expansion will see another 22 stores opening in the next 24 months, growing total locations by 14%.
Additionally, Cencosud’s own grocer Jumbo began carrying The Fresh Market’s private label in March, growing the firm’s own brand revenue by almost 4% to $620 million.
Cencosud operates more than 1,400 retail locations and over 60 shopping centers, with a strong presence in Chile, Argentina, Brazil, Peru, Colombia and now the U.S.