Traditional Grocery Retailers in Costa Rica

PROSPECTS

Added-value proposals continue to take the lead in traditional grocery retailing

Traditional grocery retailers continued to provide a growing number of services to middle- and low-income customers in hopes of remaining relevant. These offerings ranged from banking deposits to public service payments.

New alliances and further support anticipated to improve performance

Following the lead of oriental independent supermarkets over the last five years, based on consolidated buying structures that benefit from large volume discounts and their organised negotiating capacity, a larger base of local traditional independent retailers will opt to adopt similar practices. It is anticipated that both governmental and non-governmental organisations will take the lead in promoting a wider range of business capacities among this fragmented base of small independent players.

COMPETITIVE LANDSCAPE

Sales fragmentation continues to characterise performance

Given the sales inertia that historically characterised the performance of smaller traditional grocery retailers across Costa Rica, their business model proposals continued to illustrate local customs and traditions. The retailers leverage on good neighbours relations, location and proximity, product availability and often informal credit access, sustaining relevancy among lower-end consumers.

Small grocer associations and cooperatives expected to emerge by 2023

As modern grocery retailers continues to expand and include discounters and convenience stores, traditional grocers will seek to remain competitive by offering convenient transactions in addition to groceries. This scenario will also encourage the emergence of sales associations and cooperatives over the coming five years.

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