Traditional grocery retailers remained the largest grocery channels in 2021, accounting for well over half of value sales. However, while current value sales registered a double-digit increase in 2021, this growth was mainly due to soaring inflation and in fact in constant value terms, value sales actually fell in 2021, as they also did in 2020, and traditional grocery retailers lost value share, in particular to supermarkets.
In order to mitigate soaring inflation, the government launched the Super Close programme in 2021, a basket of 70 goods that will remain at a fixed price for six months and has been agreed with several leading food companies. The programme is aimed at traditional grocery retailers and complements the already established Care Prices programme, which guarantees fixed prices for over 5,000 goods in 360 supermarkets nationwide.
Traditional grocery retailers gained from the pandemic lockdowns, as with people’s movements being restricted, they shopped in local neighbourhood stores. In 2021, with society opening up again, footfall fell in traditional grocery retailers.
Health food stores are emerging as a significant subchannel of traditional grocery retailers and are expected to continue to gain value share over the forecast period. These stores offer products such as gluten-free and other free from variants, as well as organic and less processed foods.
Accelerated by the pandemic, digital payment methods are now a common option among traditional grocery retailers and are increasingly replacing cash. QR-enabled payments such as MercadoPago from Mercado Libre and the more recent launch of Modo from the country’s leading banks are increasing penetration and it is expected that these will increasingly be accepted and this should cut down on costs for retailers and also increase convenience for customers.
E-commerce received a fuel injection from the 2020 lockdowns, with traditional grocery retailers increasingly offering direct delivery and also signing up with delivery platforms such as Rappi and PedidosYa. However, the rapid growth is not expected to continue over the forecast period, as it will for larger grocery channels, and impulse purchases will continue to be a key driver of value sales through traditional grocery retailers.
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Understand the latest market trends and future growth opportunities for the Traditional Grocery Retailers industry in Argentina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Traditional grocery retailing is the aggregation of those channels that are invariably non-chained and are, therefore, owned by families and/or run on an individual basis. For Euromonitor traditional grocery retailing is the aggregation of three channels: Independent Small Grocers, Food/Drink/Tobacco Specialists and Other Grocery Retailers. While there can be modern (i.e. chained) food/drink/tobacco specialists or other grocery retailers, due to the store's presence in the channel, these stores are still considered as traditional for Euromonitor International.See All of Our Definitions
This report originates from Passport, our Traditional Grocery Retailers research and analysis database.
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