CHILE - The Falabella Group announced plans to invest USD 4,038 million from 2016 through 2019 in order to fund the organic growth of its operations in six countries in Latin America. This four-year investment plan, in Chilean pesos, represents a 9.5% increase with respect to the 2015-18 investment plan announced last January.

Approximately 44% of this capex will be allocated to the opening of 131 new stores and 10 new shopping centers. In addition, nearly 26% of the investment will be used to increase selling area and remodel existing stores and shopping centers, in order to continue to improve the customer experience and maximize the performance of these points of sale. The remaining almost 30% will be dedicated to logistics (including new DC’s) and IT, in order to continue to grow its omnichannel operations, as well as to achieve higher levels of efficiency and productivity across the different business units in each country.

"These investments will allow us to continue to grow our physical presence, increase the scale and functionality of our digital operations and improve the efficiency and productivity of our business, all of which should contribute to the overall customer experience”, commented Sandro Solari, CEO of the Falabella Group. “Our corporate strategy is based on profitable, responsible and sustainable growth. With this in mind, we are closely monitoring the evolution of the markets in which we operate and the opportunities that may arise in the current economic environment”.

By year-end 2015, the Falabella Group had 459 stores and 40 shopping centers in the region. During the year, the Falabella Group opened 23 stores: nine in Chile, six in Peru and four in Colombia, as well as the Company’s first two Sodimac stores in Brazil and first two stores in Uruguay. In terms of store format, this year the Falabella Group opened ten home improvement stores, eight supermarkets, four department stores and the first Crate & Barrel store in South America (Peru). Falabella plans to roll-out Crate & Barrel stores, which specialize in home furnishings and accessories, in Chile, Peru and Colombia.

Falabella Investment Plan 2016-2019

Source: Falabella

Falabella Investment Plan 2016-2019, New Stores and Malls

Source: Falabella