Food and Drink Internet Retailing in Argentina

PROSPECTS

Food and drink with a huge growth but a big potential

Although the food and drink categories have seen some of the highest growth within those categories that are sold online, 76% in 2017, according to CACE data (Argentinian Chamber of Electronic Commerce), these categories are still considered in development, and have a potentially large number of buyers who still do not buy such products online but who already buy other categories online. There are several reasons for this situation.

Carrefour has yet to develop online sales of food and drink

Only the most important chains offer the option to buy online and in most cases, they tend to offer a much smaller assortment than they offer in physical stores. However, the Carrefour chain still does not offer the possibility of buying food and drinks online, while other chains such as Cencosud’s (Jumbo, Disco and Vea), Walmart or Coto do offer this service.

Tiendeo.com, which offers the possibility to see all catalogues on one site, keeps growing

Tiendeo.com is a Spanish start-up with presence in 35 countries, which in just six years has managed to position itself as one of the most successful start-ups.

COMPETITIVE LANDSCAPE

Cencosud offers pick-up option that means customers do not leave their cars

One of the limitations of food and drink internet retailing is that the delivery areas are relatively small. To overcome this problem, Cencosud’s chains Jumbo, Disco and Vea, began to offer the possibility of online order pick-up by car.

Walmart associated with Mercadoni app to deliver purchases

Walmart, which was already offering its customers the possibility of online purchase pick-up its branches, is still looking for new ways to boost the online channel. In this way, the company signed an agreement with the Mercadoni delivery app to deliver orders in real time, having the goal to exceed 20,000 orders per month by the end of 2018.

Important app development to boost food and drink internet retailing

A novelty is that the main chains that offer food and drink internet retailing have also developed their own apps so that consumers can make their purchases comfortably from their smartphones. In this context, the chain that has advanced the most in terms of the options its app offers is Walmart whose app has a scanner that allows the product bar code to be read.

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