What: The situation in Chile is tense for all retailers.

Why it is important: In many markets, we should expect large players selling off family jewels in order to maintain finances in the black.

Chilean retailer Falabella is initiating an asset sale valued between USD 800 million and USD 1 billion. This move, announced during a call discussing third-quarter results, is designed to strengthen the company's financial position. Falabella recently reported a reduction in net losses for the quarter, although it still operated at a loss, primarily due to decreased sales in its stores. The sale will focus on non-core assets, predominantly real estate, but specific details were not provided due to market regulations. The asset sale process is expected to take 12 to 15 months. Falabella has been facing challenges due to high inflation and reduced consumer spending, which have impacted earnings, especially in its largest market, Chile.

Chile’s Falabella has started a $800m asset sale to consolidate finances