Adopting an omnichannel strategy has no doubt become the main route taken by department stores as the channel remains relevant to many local consumers. As one of the preferred channels chosen by Chileans to buy a wide range of products from apparel to home furnishings, department stores have been able to capitalise in 2021 on established relationships formed over the years.
The return to in-person shopping has meant that in-store experiences have resumed in many ways, with both Falabella and Paris returning to offer the personalisation of products and special displays presented by experts in their stores. While e-commerce continues to be an attractive alternative, special events, such as showing products by influencers or in-person cookery classes, have been well received by consumers and have driven visits.
Inflation rose steadily in Chile during the pandemic, and by December 2021 it had reached levels not seen since 2008. The impact of the increase in international prices and domestic liquidity, amongst other factors, resulted in a notable increase in the cost of living for Chileans, including the prices of products offered by department stores.
Loyalty programmes should continue to be a key component in attracting consumers and helping them feel that by choosing a specific retailer for many of their purchases, they are receiving a greater return for their money, not only based on competitive prices but by gaining something back from the store. Both Cencosud and Falabella allow consumers who have signed up for their loyalty programmes to collect points for purchases made in-store and online, which can then be applied towards purchases or exchanged for products from a selected catalogue.
Department stores are not expected to experience major changes over the forecast period in terms of brands, as the main players already present in Chile experienced a positive 2021, as consumers gradually returned to in-person shopping, allowing them to achieve a more balanced distribution of sales between online and physical operations. While space has certainly been created by the closure of Cencosud’s Johnson's Mega, it is likely that its sister brand Paris has mostly absorbed the former’s consumer base due to familiarity, whilst those with no previous connection to the brand proposition of Paris have gravitated towards other banners such as Hites, Ripley or Falabella, meaning that the emergence of new department stores is unlikely over the forecast period.
The launch and expansion of online marketplaces has been leveraged by department stores as a way of not only quickly expanding their catalogue of products, but also of diversifying delivery options, as many brands present on department stores’ websites deal with distribution themselves. It is anticipated that this push will continue over the forecast period.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Department Stores industry in Chile with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Department Stores industry in Chile, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq metres and arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.See All of Our Definitions
This report originates from Passport, our Department Stores research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!