Despite the rapid growth of modern grocery retailers, traditional grocery retailers remain significant in the country. The channel is led by independent small grocers, popularly referred to as colmados.
Independent small grocers have several competitive advantages over their modern counterparts in the country, including home delivery services via motorbike throughout major urbanised areas. These outlets also sell items in small amounts, based on the needs of consumers who might not have the resources to purchase a standard size typically for retail sale in a supermarket, and operate during extended hours.
Given the dynamism of microenterprises in the Dominican Republic, led by independent small grocers, many have joined associations and other groups to seek new opportunities to stimulate sales and growth in the country. At the end of 2017, the National Federation of Merchants and Small Business Owners of the Dominican Republic (FENACERD) signed a strategic alliance with the People’s Republic of China which seeks to foster new bilateral opportunities for both parties.
Traditional grocery retailers lead overall store-based retailing in the Dominican Republic, supplying products that are needed daily. The channel continues to be characterised by independent small grocers known in the country as colmados.
Many traditional grocery retailers still operate in an informal or semi-formal manner in the country. The government continues to encourage micro and small enterprises to formalise their structures for tax reporting purposes, even offering free registration or other benefits for formalising their businesses.
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