Discounters in Chile

PROSPECTS

Demand for discounters outside of Santiago

Over the last two years, discounters experienced the transformation of more than 100 outlets under the Ekono brand into supermarkets, which negatively affected the overall size of the channel. Despite this, most other players continued to grow through the opening of new outlets.

Discounters continues to be the best option for saving

Although economic expectations after the presidential elections were positive, during 2018 consumers’ purchasing confidence remained low, and they continued to be cautious about how they spent their money. The discounters channel offers a value proposal oriented to segments with lower incomes, offering cheaper products, but also a more limited product variety than found in supermarkets.

Delivery platforms and discounters benefit from one another

The initial business focus for delivery platforms in Chile was foodservice; however, many platforms have started to expand to new business verticals and have found an opportunity to grow through the retail industry. During the 2018 version of Cyber ??Monday, PedidosYa, one of the best-recognised restaurant delivery platforms in the region, created a pilot plan called CyberYa in order to operate as a delivery platform within modern grocery retailing.

COMPETITIVE LANDSCAPE

Wal-Mart Chile continues to lead discounters

Wal-Mart Chile’s Ekono discounters brand continues to undergo its transformation to a supermarket, becoming part of the brand Lider. Former Ekono outlets are located in strategic places in cities with a good influx of traffic, and will see renewed growth through a format that is preferred by customers, Express de Lider.

SMU maintains second place

SMU remained the second company in discounters in value terms in 2018, offering two retail brands, Mayorista 10 and Alvi. It saw an increase in its value share in 2018, despite seeing declining sales.

Discounts to accentuate the competition

Discounters are already known to offer much lower prices than supermarkets or hypermarkets, but have now begun to increase the competition with marketing strategies that offer discounts on top of their already low prices. Bodega ACuenta launched a campaign that offers 200 products that can be purchased for particularly low prices.

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