Home and garden specialist retailers saw the continuation of the impact of pension fund withdrawals authorised at the end of 2020 and the beginning of 2021. Chileans continued to invest those funds in making home repairs and upgrades, supported by improving stock levels available in stores, as well as the rising cost of mortgages as interest rates were adjusted to help address increasing inflation in the country.
Inflation rose steadily in Chile during the pandemic, and by December 2021 it had reached levels not seen since 2008. The impact of the increase in international prices and domestic liquidity, amongst other factors, resulted in a notable increase in the cost of living for Chileans, including the prices of products offered by home and garden specialist retailers.
As noted in other channels, e-commerce continued to gain ground and cannibalise in-store sales of home and garden specialist retailers to varying degrees. Consumers and retailers are expected to continue to prefer to conduct big-ticket purchases via e-commerce, especially as stock in stores remains limited or non-existent in certain regions of the country as retailers centralise operations in bigger distribution centres.
As home and garden specialist retailers continue to improve their portfolios, consumers can now find a greater selection of products in any physical stores and online. For instance, Zara Home launched an online store, while physical growth was slowing for the brand.
While the elimination of most restrictions in 2021 gave a boost to sales, the continued rise in prices and an unstable economic environment could impact home and garden specialist retailers over the forecast period, although the channel is set to remain relevant to consumers. Players are likely to continue to expand their product portfolios and position themselves as offering more than decorations or home repair solutions.
After years of speculation and work to achieve a viable agreement, Falabella and IKEA are expected to enter into a joint partnership in Chile during 2022, with the expectation to quickly begin online operations and expand physical stores across the Metropolitan region, before expanding to the rest of the country. This joint operation is expected to see the opening of the first location in the flagship shopping centre of Falabella, in the Open Plaza Kennedy located in Las Condes.
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Understand the latest market trends and future growth opportunities for the Home and Garden Specialist Retailers industry in Chile 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.
If you're in the Home and Garden Specialist Retailers industry in Chile, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is the aggregation of homewares and home furnishing stores and home improvement and gardening stores. Business-to-business sales are excluded.See All of Our Definitions
This report originates from Passport, our Home and Garden Specialist Retailers research and analysis database.
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