Convenience Stores in Argentina

PROSPECTS

Convenience stores struggle to keep up with expansion of supermarkets

Although convenience stores continue to expand their operations, they are performing much worse than hypermarkets and supermarkets. When having to stock up with large purchases, consumers tend to prefer hypermarkets and supermarkets, which regularly offer 2x1 and 70% off second unit offers.

Growing competition from forecourt retailers

Forecourt retailing has seen enormous changes in recent years. For example, Pampa Energía recently bought the Petrobás chain, although this acquisition lasted for just one year, with the chain being sold again to Trafigura, owner of the Puma brand.

Price sensitive consumers turned off by limited promotional activity

One of the characteristics of this channel is that most players, although they belong to large chains, do not employ the same promotions as hypermarkets and supermarkets. The main chains in the modern channel offer good discounts when purchasing two equal products, usually at the weekend.

COMPETITIVE LANDSCAPE

Rapid expansion ensures Carrefour continues to dominate sales

Carrefour has led the way with regard to the development of the convenience stores channel since 2012, opening a large number of new stores every year and revolutionising the modern trade channel. Carrefour continues to dominate sales due to the popularity of the Carrefour Express format, which has the largest network in the country, although some branches had to be closed as a result of the current economic crisis.

Diarco providing strong competition by committing to low prices

With the promise of offering the same prices as in its warehouse club stores, Diarco launched a convenience store chain called “Diarco Barrio”, opening 10 branches in 2018. All branches are located in the City of Buenos Aires.

Discounters provide convenient and low priced alternative to convenience stores

Convenience stores continue to face strong competition from discounters, which have grown strongly in recent years and are expanding rapidly, offering a highly convenient option for consumers seeking a good price/quality ratio, thus attracting convenience store shoppers. Branches are typically located in all types of neighbourhoods, thus providing a convenient and low price option for consumers.

Files are delivered directly into your account within a few minutes of purchase.