The Fresh Market reports a 0.8% decline in comparable-store sales as weaker traffic and produce demand offset digital growth. Parent Cencosud posts its strongest revenue growth of 2026.
The Fresh Market reported a 0.8% decline in comparable-store sales during the third quarter of 2026, as softer consumer demand, declining store traffic and the impact of the Cyclospora outbreak weighed on the specialty grocery chain’s performance.
The retailer, owned by Chile-based Cencosud, generated approximately $500 million in quarterly revenue, an increase of 1.4% in U.S. dollars from the year-earlier period. The results contrasted with stronger performance across Cencosud’s international operations, where consolidated revenue increased 9.2%.
Cencosud attributed The Fresh Market’s weaker performance partly to the Cyclospora outbreak, which disrupted The Fresh produce sales during the quarter. The outbreak added pressure to a business already contending with more cautious consumer spending and increased promotional activity.
Despite the decline in comparable-store sales, The Fresh Market recorded substantial growth in its digital business. Online sales increased 17.8%, while e-commerce penetration reached 9.9% of total sales, an increase of 139 basis points from a year earlier.
Profitability softened slightly. The retailer’s adjusted EBITDA margin declined to 7.4% from 7.5%, reflecting higher product and supply chain costs and additional promotional spending. Operational efficiencies partially offset those expenses.
Cencosud Reports Strongest Sales Growth of 2026
Cencosud reported third-quarter consolidated revenue of 4.328 trillion Chilean pesos, approximately $4.64 billion, representing a 9.2% increase from the previous year and its strongest quarterly revenue growth of 2026.
The company’s U.S. operations, consisting of The Fresh Market, accounted for 11.7% of consolidated revenue.
Cencosud CEO Rodrigo Larraín described the quarter as an important improvement in the company’s operating performance, citing renewed sales growth in Chile, expansion of digital operations and progress in its broader business transformation.
The company’s Chilean supermarket business returned to positive comparable-store sales growth, while digital sales increased at double-digit rates in all six countries where Cencosud operates.
Consolidated online revenue rose 17.4% to approximately $478 million. Argentina recorded the strongest digital growth, with online sales increasing 58.5% in local currency. Subscriptions to the company’s Prime loyalty program increased 39.6% across its markets.
Cencosud reported net income of approximately $54 million, up 477.9% from the prior year, although the increase benefited from investment property revaluations.
Adjusted EBITDA declined 5.2% to approximately $317 million, reflecting higher operating expenses in Chile and the year-over-year effect of the sale of the Bretas business in Brazil.
Expansion and Digital Investment Continue
Cencosud continued investing in its international retail operations during the quarter, opening nine stores in Chile and a Giga-format store in São Paulo, Brazil.
The company also advanced a 22-store renovation program in Brazil and consolidated ownership of Colombia’s Plaza Central shopping center following its acquisition of a 51% stake.
Cencosud operates 1,362 retail stores and 69 shopping centers across six countries and employs more than 116,000 people.
The Fresh Market’s quarterly results highlighted the continuing challenges facing specialty food retailers as consumers remain selective about spending and operators contend with higher costs.
The chain’s nearly 18% increase in online sales demonstrated continued demand for digital shopping options, but that growth was insufficient to prevent a decline in comparable-store sales.
The results also underscored the financial consequences of the Cyclospora outbreak for retailers with significant fresh produce businesses. At The Fresh Market, weaker produce sales contributed to declining store traffic and additional pressure on an already competitive operating environment.
The company did not provide a specific estimate of the outbreak’s financial impact on its U.S. operations.