Tottus' operating results fell by 7.4% in March because of its investments. Hypermarkets Tottus build a distribution centre in Peru that, according to people acquainted with the chain in Chile, would be the market's most modern distribution centre.
"This will improve the efficiency of operations in Peru," they said. Earlier, a report by Apoyo & Asociados had indicated that the construction of the distribution centre, which was going to be located in Huachipa, was going to start in the medium term. The investment required for this project could amount to USD 35 million.
The report also noted that Tottus sought to offer a higher percentage of non-food products, because they would allow them to obtain a larger margin.
Operating results in March fell by 7.4% as a result of the investments, they noted. "This is because of the new openings and the higher logistical costs due to the construction of a distribution centre that involves spending more money on renting warehouses," justified Tottus in its financial statements.
Currently, Tottus has 43 stores in Peru and more than 25% of the market share, doubling its size in recent years. In the last 12 months, Tottus has opened 9 new branches in Peru. Sodimac is also going to build a new distribution centre on the road to the southern beaches.
Source: gestion.pe