Convenience Stores in Argentina

PROSPECTS

Lower growth of convenience stores

Although convenience stores saw its development slow in 2018, its performance was much better than that for hypermarkets and supermarkets. Consumers continue to find this channel a good option because they make smaller and more frequent purchases, taking advantage of the different discounts that this channel offers.

Forecourt retailers, another key competitor of convenience stores, with changing owners

Forecourt retailing has seen enormous changes in the last two years. In 2017, Pampa Energía bought the Petrobás chain, but this acquisition lasted for just one year as in 2018 the chain was sold to Trafigura, owner of the Puma brand that had begun expansion in the country.

Fewer promotions than in hypermarkets and supermarkets

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, but in this channel these discounts do not apply.

COMPETITIVE LANDSCAPE

Carrefour, the absolute leader in convenience stores

Carrefour is the chain that developed the convenience stores channel since 2012 with a large number of openings every year, revolutionising the modern trade channel. Carrefour continues to enjoy absolute leadership of the channel, although as a result of the current economic crisis has had to close some branches.

Diarco started competing in convenience stores

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 the branches are located in the City of Buenos Aires and with its commitment to offer the same prices as in its large stores, it makes such stores very tempting for the general public seeking low prices.

Discounters, strong competition for convenience stores

A channel that competes directly with convenience stores and is enjoying very positive evolution is discounters. This channel has grown strongly in recent years based on expanding the number of outlets and has become a very convenient option for consumers seeking a good price/quality ratio, strongly tempting those buyers who used to visit convenience stores.

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