Riachuelo plans up to R$ 4 billion to revamp and expand stores

Brazilian retail chain Riachuelo is executing an investment plan of between R$ 3 billion and R$ 4 billion to renovate its entire network of 350 stores and open between 150 and 200 new units in coming years. The company is also allocating another R$ 500 million to logistics.

In the coming weeks, the retailer expects to open 14 stores and renovate seven others, starting with a location in Ipanema, Rio de Janeiro. The company targets opening roughly one store per week through the end of the year under its new concept, while full results from the remodel formats are expected by April of next year.

Riachuelo has posted 12 consecutive quarters of growth, turning a loss of R$ 200 million in 2022 into a profit of R$ 500 million in 2025. Its supply chain is currently structured with 40% to 45% in-house manufacturing, 30% imports from Asia, and 25% to 30% from local producers, alongside a catalog of 100 thousand continuous products to cushion weather volatility.

The business has also opened a 416-square-meter flagship laboratory store on Oscar Freire street in São Paulo and launched store-in-store spaces for its tech-basic line D-Ultra. CEO André Farber noted that modernising physical retail serves as protection in potential economic downturns, while pointing out tax asymmetry concerns with foreign online competitors.