Convenience stores in Brazil were allowed to continue operating regularly during the entire period of quarantine restrictions in Brazil from March 2020. In addition, the convenience store format enjoys a smaller selling space and focuses on a limited product assortment to prioritise those categories that consumers look for the most.
Convenience store chains benefit from a diversified strategy in terms of location. While some are located in residential areas, others are situated in neighbourhoods where commercial activity is more intense.
Nevertheless, there are relevant differences that set convenience stores apart from discounters and traditional grocery retailers. Convenience stores most commonly work with brands that are not easy to find in either discounters or traditional grocery retailers, due to the lower-priced positioning of the latter two.
Despite often being a competitor to traditional grocery retailers, the relationship of convenience stores with those players can be repurposed. In 2020, Cia Brasileira de Distribuição launched Aliado Minimercado, a format that resembles a convenience store, but is focused exclusively on B2B (business-to-business) transactions.
Digitalisation has been key for any player to be considered successful in Brazilian retail since the start of the pandemic in the country. This is no different for grocery retailers.
The review period marked a phase of retrenchment for many of the leading players in convenience stores as they postponed their outlet expansion plans. The reason behind this was twofold.
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Chained grocery retail outlets selling a wide range of groceries and fitting several of the following characteristics: Extended opening hours Selling area of less than 400 sq metres Located in residential neighbourhoods Handling two or more of the following product categories: audio-visual goods (for sale or rent), foodservice (prepared take-away, made-to-order, and hot foods), newspapers or magazines, cut flowers or pot plants, greetings cards, automotive accessories. Sales data excludes foodservice sales. Example brands include 7-Eleven, Spar. Note: The number of branches required to be termed chained varies from country to country but is usually ten or more. If a multinational is operating in the country, then this is included, even if there are fewer than ten outlets under the brand.See All of Our Definitions
This report originates from Passport, our Convenience Stores research and analysis database.
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