Peruvian retailer plans to top Cencosud

By Jean Luis Arce

LIMA (Reuters) - Peruvian retailer Supermercados Peruanos STI.LM said on Monday it hopes to overtake Chile's Cencosud CEN.SN as Peru's top supermarket operator in the "next three years."

The company, which currently has some 30 percent of the local market, will invest up to $100 million a year over the next several years to become the supermarket leader, said Chief Executive Norberto Rossi, who spoke at the Reuters Latin American Investment Summit in Lima.

Rossi said the company will invest $60 million in 2008.

"Last year, we were the supermarket with the greatest growth... and we hope to become the market leader in the next three years," said Rossi.

Cencosud's Wong supermarket chain has about 60 percent of Peru's supermarket sales. Wong also owns the Metro and Eco formats.

Chile's Falabella FAL.SN, another retailer, has some 10 percent of Peru's supermarket sales with its Tottus format.

Rossi added that Supermercados Peruanos' parent company, which also owns Peruvian banker Interbank (RBA.LM: Quote, Profile, Research), supports the expansion and has the "muscle to inject capital."

Supermercados Peruanos operates the Plaza Vea, Vivanda, Santa Isabel, and Mass brands in Lima and in some cities on the inside of Peru.