Pet Retail Market and Valuation Outlook
Physical Expansion
32
Is Consolidation Viable for Megastores?
Ok, we understand the the megastores will consolidate the industry, but is there physical space for them?
And we map all possible points in the country, granularly...
Granular Geospatial Analysis - How many Megastores fit in Brazil; [cities]
...with high returns per store, above the Cost of Capital...
4-Wall Analysis; [%]
Number of Megastores New Cities
> 10
> 9
> 8
> 7
25
> 6
35
> 5
42
> 4
58
> 3
80
> 2
> 1
126
226
222232
20
21
35.8%
|---- WACC = 10%
29.7%
ROIC per Mature Store
Petz Cobasi
20.4%
16.5%
EBITDA Margin per Mature Store
Overview | Promissing Industry | Assertive Hub-and-Spoke Strategy | Expansion to Outpace | Healthy and Solid Ecosystem | ESG | Valuation & Risks
Source: IBGE; QGIS; Team 7View entire presentation