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Global Briefing

Convenience and Low Prices: The Appeal of Modern Grocery Retailing in Latin America

Mar 2012

Price: US$2,000

About this Report

About this Report

Modern grocery retailing in Latin America remains underdeveloped. Strong networks of traditional grocers exist, which together with informal retailing and competition from foodservice channels, amongst others, have made it difficult for modern grocers to make their mark. However, in the short term, opportunities for convenient, close-to-home, all-in-one, price-oriented outlets are rising, and modern retailers are taking advantage in metropolitan areas and outside.


What this report includes

  • Up-to-the minute analysis of the latest trends in the industry
  • New product development, forecasts and other themes
  • Unique graphics and illustrated case studies
  • Most recent brand and company news
  • New insight into the size and shape of the market

Why buy this report

  • Leading industry opinion keeps you abreast of latest news and trends
  • Forward-looking outlook on a category, market or issue affecting the industry
  • Latest five year forecasts assess how the market is predicted to develop
  • Understand the competitive environment, the leading players and brands

Table of Contents

Table of Contents

introduction

Scope

Introduction

Objective and Parameters

Key findings

Latin America: Modern grocery retailing lags global average

Regional overview

Modern grocery’s penetration rates differ across Latin America

Newer formats – convenience stores and discounters – lead growth

Wal-Mart: Number 1 in modern grocery retailing in Latin America

Global and regional players matrix

Global retailers’ mixed performance in Latin America in 2011

Evolution of grocery retailing in Latin America

Traditional channels fight back, adopting modern channels’ tactics

Modern grocery outpace traditional except in Brazil and Colombia

Non-grocery and foodservice channels provide competition too

Three factors shape modern grocery retailers in Latin America

Convenience: retailer as cultural and social hub

Convenience trend a main driver in grocery retailing

Close to home and modern stores boosts convenience store chains

Foodservice often offers consumers the most convenient option

Hybrid modern grocery retail and foodservice format limited in 2011

Case Study: FEMSA (Fomento Economico Mexicano SA de CV)

Financial service: Another way to offer extra convenience

Convenience stores to lead sales growth

What’s next? Channels to promote links with their communities

What’s next? Social and cultural hub in a modern environment

Pricing: format differentiation

For consumers, pricing is not just about private label and promotion

Hypermarkets lose relevance with price-focused consumers

Cash and carry represents a direct rival in a number of markets

Carrefour expands Atacadão banner across region

Wal-Mart leads the way in pricing strategy

“Discounter+”: Hybrid concepts show the way

Limited private label strategies from regional and local players

What’s next? Private label missing out

What’s next? Hybrid format steals the show

Challenging environment ahead

Factors likely to boost the expansion of modern grocery formats…

…But growth may have its limits

Success story: Chile-based Cencosud set to continue expansion

What’s next? Geographic expansion to reach new consumers

What’s next? Opportunities in a consolidated environment

Competition outside of modern grocery set to remain strong

Report Definitions

Data parameters and report definitions (1)

Data parameters and report definitions (2)

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