Falabella remained the leader in department stores in 2021, with only much smaller players as competition. In general, therefore, the evolution of department stores in Colombia has been greatly driven by the performance of the leader, Falabella.
The rapid growth of sales through e-commerce forced Falabella to improve its logistics operations, increasing the capacity of its distribution centres and adapting its ship-from-store strategy. While in the early stages of the pandemic Falabella performed well through its online channel, the department store suffered from some strong criticism because of issues such as delays in delivery and lost orders.
Only Stores, well-known traditional stores in Bogotá, has been one of the most iconic examples of low-budget reinvention amongst Colombian businesses. Given its logistical capacity and its financial arm, the company was not able to open its own website during the COVID-19 crisis.
The department stores channel is particularly dependent on the consumer experience of stores and the idea of shopping as a leisure activity. As a result, it is particularly vulnerable to factors such as restrictions on the operations of stores and concerns about social contact.
With the decline in in-person shopping, livestreaming made inroads during the COVID-19 pandemic, emerging as a digital shopping medium with the ability to create an emotional connection more associated with in-person shopping. Live selling has the potential to further disrupt an already shaken retail industry in 2021 and beyond.
The increased consumer use of financial cards as part of a more general move to cashless payment, which was strengthened by concerns about viral transmission via cash during the pandemic, may provide opportunities for the further development of store cards and co-branded credit cards during the forecast period. On the other hand, the ongoing increase in Colombia’s banked population may increase competition for such cards and reduce demand.
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Understand the latest market trends and future growth opportunities for the Department Stores industry in Colombia 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.
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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 DefinitionsThis report originates from Passport, our Department Stores research and analysis database.
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