While growing moderately in value terms, small-format grocery stores posted strong growth in terms of the number of outlets in 2018, with not only major leading chained players rapidly opening new stores but also smaller ones as well. Seeing that consumers have become not only less interested in conventional grocery shopping, such as at supermarkets and hypermarkets, but are looking for something more personal, convenience stores have attracted Brazilian consumers to their doors.
Multiple factors have been shaping the way Brazilians shop and interact with grocery retailers, thus favouring the convenience store model in the years to come. Facing a fast-pasted reality where the average Brazilian must increasingly optimise their free time, consumers look for a quick and easy way to shop for their necessities, commonly, their daily necessities.
While walking the streets of any major city in Brazil, it is not uncommon to find oneself near a convenience store – being from a big chained player such as Carrefour, or a smaller and more local player; however, companies are not investing heavily in opening outlets in smaller population centres, which have strong potential.
Carrefour, with its Carrefour Express brand, Cassino, with Minuto Pão de Açucar and Mini Mercado Extra, and Dia with its Dia Market have all invested in opening new outlets to capture growth, while other formats such as hypermarkets have been going through a speed bump. Having the basic household necessities available on their shelves, players are also offering freshly baked goods, clean and attractive displays filled with fresh produce and the means to consume ready meals at their outlets, doing all they can to attract customers to their doors.
Hirota Foods is a local player whose outlets are concentrated in the great urban area of São Paulo. While in the past only a Brazilian/Japanese supermarket in the city, Hirota Foods penetrated the convenience store category with its convenience format inspired by its Japanese counterpart, while still expanding within supermarkets.
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Discover the latest market trends and uncover sources of future market growth for the Convenience Stores industry in Brazil with research from Euromonitor's team of in-country analysts.
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