Cencosud Bets $600M on Aggressive Growth and Digital Overhaul

BUENOS AIRES, Argentina – January 14, 2026 – South American retail giant Cencosud has unveiled an ambitious USD 600 million investment plan for 2026, signaling a major push to accelerate growth across its physical and digital landscapes. Announced during its Cenco Day event in Buenos Aires, the plan reaffirms the company's strategy of disciplined capital allocation to expand its multi-format empire, which spans six countries and includes supermarkets, home improvement stores, and shopping centers.

The investment, which mirrors the capital expenditure of the previous year, is heavily weighted towards expansion. A substantial 70% of the funds are earmarked for growth initiatives, including the opening of 20 new stores and significant renovations. This move is projected to add over 42,000 square meters of new sales floor space to its portfolio. The company's shopping center division is also set for a major boost, with developments and expansions expected to add more than 40,000 square meters of Gross Leasable Area (GLA).

“These investments will allow us to accelerate our organic growth, continue strengthening the customer experience, and further consolidate Cencosud’s value proposition in each of the markets where we operate,” said Rodrigo Larraín, CEO of Cencosud. He added that the plan reaffirms the company's commitment to innovation and creating sustainable value.

This strategy is a continuation of a proven approach. In 2024, a similar investment of US$641 million fueled the opening of 43 new stores and contributed to a 15.9% year-over-year revenue increase, driven by strong performance in the United States, Colombia, and Peru. With this new plan, Cencosud is projecting consolidated revenues to reach USD 18.4 billion and an adjusted EBITDA of USD 1.8 billion by the end of 2026.

The American Ambition: Doubling Down on The Fresh Market

A cornerstone of Cencosud's 2026 growth strategy is its deepening commitment to the United States market. The plan allocates significant resources to its premium grocery subsidiary, The Fresh Market, with seven of the 17 new supermarkets slated for opening in the US. This move underscores the strategic importance of the American brand in Cencosud's global portfolio.

Cencosud first entered the US in May 2022 with the acquisition of a 67% stake in The Fresh Market for $676 million. The venture proved highly successful, with the specialty grocer exceeding initial performance estimates. This success prompted Cencosud to acquire the remaining 33% stake in 2025, taking full ownership and solidifying its foothold in what it considers a "traditionally defensive market with a stable currency."

The Fresh Market, which operates 172 stores across 22 states, has carved out a strong niche in the highly competitive US grocery sector. Recognized for four consecutive years as "America's Best Supermarket" by USA Today, its focus on high-quality fresh produce, gourmet meal options, and a premium in-store experience has cultivated a loyal customer base. Cencosud's leadership has expressed confidence in the brand's potential, suggesting a long-term goal of tripling The Fresh Market's business, partly through the addition of dozens of new, low-risk store locations.

This expansion is not just about increasing store count but also about leveraging synergies. Cencosud aims to share best practices between its Latin American operations and The Fresh Market, while the US presence provides access to deeper capital markets, fueling further growth.

Beyond Bricks and Mortar: The Digital Ecosystem

While physical expansion remains a priority, the remaining 30% of the 2026 Capex is dedicated to what the company calls its 'Retail Ecosystem'—a strategic focus on digital transformation, e-commerce, and advanced logistics. This investment is crucial as the company navigates a retail landscape increasingly shaped by technology and evolving consumer habits, particularly in Latin America, where e-commerce sales are projected to double between 2021 and 2027.

A key component of this digital push is Cencosud Media, a retail media unit launched in 2021. Leveraging first-party customer data, artificial intelligence, and a vast omnichannel network, Cencosud Media enables brands to execute targeted advertising campaigns across the company's physical stores, websites, and apps. The unit has seen rapid growth, being named one of the fastest-growing retail media networks in Latin America, a market where ad spending is forecast to triple by 2028.

This digital investment also aims to bolster the company's e-commerce platforms and omnichannel services, such as Jumbo Prime and SPID, with a stated goal of achieving double-digit online sales penetration across the group. By enhancing its digital infrastructure and logistics capabilities, Cencosud is positioning itself to capture a larger share of the burgeoning online market and deliver a seamless, integrated shopping experience that blends the convenience of digital with the appeal of its physical stores.

Financial Footing and Market Outlook

Cencosud's ambitious 2026 projections—USD 18.4 billion in revenue and USD 1.8 billion in adjusted EBITDA—are built on this foundation of strategic physical and digital expansion. These figures represent steady growth from its 2024 performance, where it posted nearly USD 17.5 billion in revenue. The company is confident it can achieve double-digit EBITDA margins in its key markets of Chile, Peru, and the United States, buoyed by operational improvements and the expansion of its most profitable ventures.

Financial analysts maintain a cautiously optimistic outlook. The consensus rating for the company's stock is currently "Neutral," reflecting a balance between its strong growth potential and potential macroeconomic headwinds in some of its operating regions. However, analysts forecast impressive earnings growth of over 40% per year, significantly outpacing the broader market, driven by the company's diversified business model and commitment to innovation.

The 2026 investment plan is a clear statement of intent. By simultaneously expanding its physical footprint in high-value markets and building a sophisticated digital ecosystem, Cencosud is making a calculated bet that this dual-pronged strategy will secure its position as a dominant retail force in the Americas for years to come.