Americanas, one of Brazil's most traditional retail chains, is facing a period of great challenges after suffering an accounting scandal in 2023. With an accumulated loss of $ 1 billion, the company is undergoing a judicial recovery and continues to restructure its operations. Which includes closing several physical stores.
Americana's situation reflects the complexity of the economic scenario and the difficulties faced by companies that rely on physical and digital retail.
The American accounting crisis and its effects
In January 2023, an accounting fraud worth R$25.3 billion was uncovered, resulting in Americans To file a judicial recovery request. This was one of the biggest financial scandals in modern Brazilian history, shaking the confidence of investors, suppliers and consumers.
The immediate impact was the need to profoundly restructure the company's operations to avoid bankruptcy.
Financial performance
Despite the seriousness of the situation, Americanas managed to reduce its losses in 2023 to R$2.3 billion, a significant improvement compared to R$12.2 billion in 2022. In the first six months of 2024, the company recorded a loss of R$1.4 billion, down 53% compared to the same period the previous year. This reduction in losses suggests that the restructuring strategy may be having an effect, although the financial situation remains worrisome.
contraction strategy
Americana is focused on improving its physical operations, with 71% of its total sales in the first half of 2024 coming from physical stores, a significant increase from 34% in 2022. However, this focus does not mean expansion. The company has already closed about 10% of its stores since the start of the judicial recovery, and more closures are planned.
Americanas President Leonardo Coelho stressed that the focus is on ensuring that the remaining stores are profitable. “We have to close stores, not many, but as much as necessary,” he said. The move is aimed at avoiding additional losses and focusing the company’s resources on more profitable operations.
Limit digital operations
In addition to closing physical stores, Americanas has also decided to reduce its digital operations. In 2022, online sales accounted for 59% of the company’s revenue, but a “credibility crisis” caused by the accounting scandal has seen digital sales drop by 75%. To mitigate this loss, the company has discontinued the so-called “1P” process, which involved purchasing products for sale online, and has only maintained a marketplace model, where third parties sell their products on the Americanas platform.
Perspectives for the future
Americana’s future is uncertain. The company is currently under judicial supervision, and according to CFO Camille Faria, this process is not expected to be completed before 2026. “We are now under judicial supervision. In general, the court monitors the implementation of the plan for about two years, from the date of its approval,” Faria explained. Although Americana has complied with most of the recovery plan in the past six months, the road out of judicial recovery remains long and complex.
cautious expansion prospects
Despite the focus on store closures, Coelho said the company is considering opening new points of sale, but with extreme caution. This means that despite the potential openings, the network is expected to continue shrinking until at least the end of 2025.
Impact on retail sector
The situation at Americanas raises concerns about the state of retail in Brazil. The company’s crisis is not isolated, but reflects a challenging economic environment exacerbated by political and macroeconomic uncertainty. The decline in digital operations, coupled with the closure of physical stores, means that retailers need to quickly adapt to changes in consumer behavior and new economic realities.
Final Considerations
Americana continues to adapt and survive, with a clear focus on maintaining its physical operations as the “heart” of the company. However, the road to full recovery is long and challenging. Store closures are expected to continue, and the company will need to navigate carefully over the next few years to restore confidence and profitability.
For consumers, suppliers and investors, the message is clear: America is reinventing itself, but the process will be gradual and with potential pain along the way. It remains to be seen whether, at the end of the legal recovery process, the company will be able to position itself once again as one of the main names in Brazilian retail.
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