Home and Garden Specialist Retailers in Argentina

2020 IMPACT

Home and garden specialist retailers benefit from DIY home renovations and repairs in 2020

Due to far greater numbers of local consumers staying at home in 2020, and in some cases having more disposable income available as expenses in other areas reduced, many Argentinians carried out renovations and repairs in their homes. As a result, paint shops recorded strong growth during the pandemic, breaking stock records in some months.

Easy expands store network to remain in pole position

With 44 stores distributed throughout the country, Easy leads home and garden specialist retailers’ sales. In recent years, the company has also managed to significantly boost sales via its online channel and offering constant promotions in different segments.

Paint shop players leverage the franchise model to extend outreach

Franchising is a very successful model that allows for expansion in a very short time, and this strategy has proved to be particularly successful for paint shops. The franchisee buys an already successful business, and the franchisor can achieve rapid expansion with very low investment.

RECOVERY AND OPPORTUNITIES

Smaller players will struggle to survive the ongoing recession

With the economic recession in Argentina expected to continue across the forecast period, sales of home and garden products are likely to be badly affected, and many smaller businesses will be forced to close. Although paint shops saw high sales and stock shortages during the pandemic, these retailers will see some contraction in the short term as people return to work and normal life and no longer have as much time and money to invest in house repairs.

A large number of neighbourhood stores and real estate decline will continue to dilute sales in the future

Home and garden specialist retailers will remain a highly fragmented channel in Argentina across the forecast period. While there are important chains, the vast majority of businesses comprise only a single outlet within local neighbourhoods.

Leading players will invest in discounting and e-commerce to attract consumers

As a result of the challenging economic environment, large paint shop chains such as Pinturerías Rex and Pinturerías del Centro permanently offer promotions in conjunction with several banks to attract consumers and avoid sales losses, and this trend is likely to be seen among other competitors in home and garden products across the forecast period. In addition, players in this category will invest further in e-commerce in order to attract a wider number of consumers who have turned towards online shopping during the pandemic and value the convenience it offers.