Supermarkets in Colombia

PROSPECTS

Targeting specific market segments

Amidst the strong offer in modern grocery retailing, supermarkets, as one of the oldest channels, noticed that it could not continue to offer the same products as its competitors, instead differentiating through price. Players have come to understand that it is a key priority to focus on particular niche areas to offer an adequate supply of their products to specific segments with different concepts.

Building loyalty through collaboration with other markets

The leaders of two different, but complementary markets tend to work together to mutual benefit. They have strengthened their alliance using a customer loyalty programme and offer a new scheme called Puntos Colombia, which uses a conversion rate to equal the points of Bancolombia, the financial sector leader, and those of the supermarket chain Éxito.

Keeping home delivery tradition, but now ordering directly through supermarkets

Traditional grocery retailing in Colombia is known for is its home delivery service, which is usually fast, free of charge and fairly affordable. Players in supermarkets have noted that home delivery is a service that Colombians frequently take advantage of, and that they need to implement a similar option.

COMPETITIVE LANDSCAPE

Higher number of renovations and greater moderation in new openings

The arrival of new and aggressive players such as discounters, has resulted in the leading supermarkets moderating their expansion plans, instead, deciding to renovate their current locations throughout the country. Therefore, players are still carrying out investment plans for new openings, but with an even more aggressive remodelling plan, which will be the key to competing with other channels.

Small chains of regional supermarkets gain momentum to compete

There are several small chains of supermarkets in different areas of the country, where their close proximity to neighbourhoods, prompt product offers, low prices and good service, have allowed them to gain a presence in the competitive landscape of supermarkets and strengthen themselves regionally. Their performance has been so successful that leading supermarkets have proposed to buy them as part of their expansion plans.

Theft causes huge problem for supermarkets

Lack of security encompasses all areas of retailing; however, external and internal theft of food and basic goods is the main problem that supermarkets face. Reasons include the migration of Venezuelans to the country, the decrease in the use of plastic bags because of the tax that makes theft easier, and the economic situation of the country.

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