Traditional Grocery Retailers in Argentina

PROSPECTS

Traditional grocery retailers benefit from smaller purchasing trend

Among the major shifts in consumer purchasing behaviour in recent years has been use of a greater number of channels. In a highly inflationary context, where salaries are not increasing at the same rate as prices, consumers are forced to optimise their budgets and look for the lowest prices.

Growing interest in innovative organic fruit and vegetable purchasing schemes

A growing number of small companies and cooperatives are selling 3-8kg bags of organic vegetables and fruit depending on the season, with content being selected at random. Those who sell products this way buy them from small producers throughout the country.

City fairs continue to grow in popularity

A new trend is growing strongly in Buenos Aires City involving “Neighbourhood Fairs” organised by the city’s government consisting of market stalls offering different products such as fruits and vegetables, meat, chicken, fish, nuts, cleaning products and storage items among others. The “fair” is itinerant and takes place in all squares of the city on a weekly basis.

COMPETITIVE LANDSCAPE

Rising health consciousness fuels interest in local health stores

A growing trend over the last few years has been the rise of stores that sell products in bulk, mainly cereals, seeds and other healthy products, targeting celiacs or diabetic people who require a special diet. These stores are called “Dieteticas” and this trend is associated with consumers searching for a healthier diet.

Res Butcher leveraging franchise model to continue expansion

Reaching a total of 55 branches in Buenos Aires City, Res Butcher continues with its expansion plans. Through the use of franchises, the chain has plans to begin expansion into both the province of Buenos Aires and the interior of the country in the coming years.

Winery continues to struggle amid mismanagement and online competition

The Winery chain, which specialises in selling wines and sparkling wines and has operated around 22 branches in its history, has suffered a drastic reduction in its number of premises due to consumption changes, with buyers in this area increasingly choosing to purchase online instead of via physical premises. In addition, the chain is also facing increasing competition from more competitive rivals that can offer lower prices.

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