While e-commerce will continue to play a growing role in small local grocers, driven mainly by delivery apps such as Rappi or PedidosYa, it is not expected to see a strong expansion over the forecast period. Impulse purchases will continue to play a key role in small local grocers sales, particularly in kiosks, and these are not well suited to online sales.
Although cash is the most common payment method used in small local grocers, it is expected that leading chains will increasingly incorporate modern payment methods, such as QR payments like MercadoPago from MercadoLibre or Modo from leading banks, during the forecast period. These payment methods are mainly used by younger consumers, who are key clients in kiosks, as they look to avoid carrying physical wallets.
Over the forecast period, a strong migration away from independent kiosks to chains is expected because of the higher profit margins offered by chained operations, as well as the wider portfolio of products and the opportunity to develop online sales because of partnerships with delivery apps such as Rappi or PedidosYa. Notably, there are chains expanding in the interior of the country, such as Yes Kioskos in Mendoza.
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Small local grocers are mostly independent retail outlets (with a selling space of under 400 square metres), kiosks, market stalls or street vendors, owned by families and/or run on an individual basis, and with a primary focus on selling food/beverages/tobacco and other groceries. Small local grocers also includes ethnic grocery stores that specialize in foreign brands and food types, health food stores, confectioners/newsagents/tobacconists (CTNs), food & drink souvenir stores, legally registered mobile shops that are run out of a truck, and regional specialty stores. Retail sales from farmers markets, farms, vineyards, or similar producers are also included in small local grocers. Outlets located within wet markets in Southeast Asia (often located in government-owned multi-story buildings) should be counted as separate outlets.See All of Our Definitions
This report originates from Passport, our Small Local Grocers research and analysis database.
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