Department Stores in Colombia

PROSPECTS

Diversity in space and deals complement the offer

Deciding to strengthen large physical spaces with new openings or remodelling continued for department stores. Instead of being concerned about the boom of internet retailing and the accelerated growth of other retailing channels, players chose to venture into other markets in Colombia.

Gaining strengthen beyond an omnichannel strategy

Taking advantage of the strengths of other retailing companies has gained greater force when incorporating them into the proposals of department stores. Moving beyond incorporating the omnichannel strategy, players continue to gain strength by including elements from other channels.

Benefits with own or partner financing alternatives

What is deemed typically Colombian and under the colloquial language of selling on credit, credit procedures in department stores are faster than through the financial system itself. Purchasing with own or allied bank credit cards in department stores is as simple as going to a store section and requesting it, even via a virtual store.

COMPETITIVE LANDSCAPE

Facing a consumer who looks for permanent savings

Although for Colombian consumers it is traditional to search for attractive but inexpensive products (with “good, beautiful and cheap” being used in the slogan by one of the oldest and most traditional department stores in the country), this search for permanent savings has further deepened after the increase in prices due to the tax reform and the economic slowdown. The competitive landscape shows that consumers who visit department stores in search of cheaper brands, spend less on clothing and prefer to purchase home entertainment products to avoid spending money out of the home environment.

Offer of unique products appeal to consumers

While the weight that brands hold amongst average Colombians is losing ground when making a purchasing decision, they are really gaining strength as a commercial concept associated with retail. Therefore, consumers are noticing that certain products can only be found in a particular place because it is typical of that retailer, leading them to associate the product with the store in which they purchased it.

Competitive price and greater variety are unattractive without quality

If one factor can be highlighted for department stores, it is its variety of options with competitive prices compared to other channels. However, the positive aspect of offering good prices with plenty of choice, cannot underestimate the price/quality ratio that consumers strongly favour.

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