C&A Brazil Bets on New Store Format as Sales Grow Double Digits, CEO Says

Why C&A Is Redesigning Its Brazilian Stores at 50

C&A is marking 50 years in Brazil with an accelerated push to redesign its physical store network. The new concept, called Energia and developed with architecture firm Gensler, replaces the traditional storefront with an open facade, adds digital screens about the brand, removes walls, creates more distinct themed environments and expands self-service and hybrid checkout options. The format was first tested a year ago at Shopping Center Norte in São Paulo, then adopted in Campinas, and has now arrived at Barra Shopping in Rio de Janeiro, a 3,600-square-metre unit carrying 90,000 products.

CEO Paulo Corrêa says the converted Center Norte store has increased sales by double digits. He attributes the lift to higher footfall and conversion: the store is easier to enter, the brand story is better told, customers see more of the assortment and spend more time inside. C&A operates 341 stores, plans to renovate at least 25 per year, and intends to open every new unit in the Energia format.

The company says total investment in renovations and new-store openings should exceed R$200 million, although Corrêa declines to disclose the cost per conversion. Alongside the store overhaul, C&A is expanding ACE, its own sportswear brand, as a standalone chain. The first ACE store opened in June at Shopping Ibirapuera in São Paulo, where C&A opened its first Brazilian store 50 years ago, and a Barra Shopping ACE is already under contract.

The push comes as C&A posted a second-quarter record profit of R$130 million, up more than 4 percent, despite what the retailer describes as the negative impact of the World Cup and high interest rates. Corrêa also criticized the decision to end the so-called 'blusinhas tax' in an election year, calling the move a distortion and saying it should be revisited.

What the Energia Format and ACE Expansion Mean for C&A

Why the Energia store is C&A's main growth bet

The Energia format is not a cosmetic refresh; it is C&A's answer to weak physical retail traffic in a high-rate environment. By removing the barrier of a traditional storefront and expanding hybrid checkout, the company is trying to raise conversion and basket size without relying solely on price cuts. The reported double-digit sales lift at Center Norte is encouraging, but it comes from a single converted flagship. The real test is whether similar lifts appear across the 25-plus annual conversions planned for a 341-store network.

ACE turns an anniversary location into a second banner

The first ACE store at Ibirapuera is symbolically important: it sits where C&A began in Brazil 50 years ago, but operates as a separate, more fashion-focused proposition aimed at athleisure. CEO Paulo Corrêa frames athleisure as a global opportunity for major brands. A separate banner lets C&A chase that segment without diluting the value positioning of its core chain, but it also means competing in a crowded category with dedicated sport and fashion retailers.

Profit resilience and the 'blusinhas tax' complaint

C&A's record second-quarter profit of R$130 million, up more than 4 percent despite high interest rates and the World Cup effect, supports the argument that format-led growth can offset a tough macro backdrop. Corrêa is open that high rates weigh on household consumption, so the company needs to create its own demand. His attack on the removal of the so-called 'blusinhas tax' is the political side of that strategy: if the levy on low-value imported clothing is not restored, C&A and other domestic apparel retailers could face renewed low-price cross-border competition.

Next Moves for Retail Executives and Investors Watching C&A

• C&A executives should validate same-store sales gains at Barra and Campinas before formally scaling the 25-plus annual Energia conversions and all-new-store format commitment.
• Investors should watch whether the more than R$200 million in renovation and opening spend is funded without eroding the record R$130 million quarterly profit base, and whether double-digit converted-store growth repeats outside flagship locations.
• Competing apparel retailers can treat the open-facade, hybrid-checkout format as C&A's answer to physical traffic pressure; they should test whether similar store-experience changes fit their own footprints.
• Industry and policy teams should track the status of the so-called 'blusinhas tax'; a sustained removal could shift low-cost import competition for Brazilian fashion retailers.