Traditional grocery retailers have been on a downward trend and over the review period modern grocery retailers surpassed traditional grocery retailers in terms of total value sales. Traditional grocery retailers performed quite well in 2020, as with people’s movements restricted, they shopped in neighbourhood stores or colmados and store owners which offer a very personalized service were happy to deliver, if needed.
As would be expected, traditional grocery retailers is a very fragmented competitive landscape, composed mainly of individually owned colmados. However, the chain Aprezio, owned by Ramos, is gaining ground and expanding.
The informal business structures and practices common within the traditional grocery retailing channel in the Dominican Republic is undermining growth. The prevailing cash-only model is restricting sales growth and limiting the channel’s ability to compete successfully with modern grocery retailers.
Over the forecast period, traditional grocery retailers will register minimal constant value growth. Continued infrastructure investment by chained modern grocery retailers is set to significantly cannibalise grocery sales for urban Dominicans, in particular.
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 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.
Price sensitivity in the Dominican Republic is set to be a key sales driver over the forecast period, especially in the wake of the economic contraction caused by the pandemic and also the possibility of rising inflation. This will accelerate the ongoing shift by many consumers from traditional grocery retailers to discounters, who continue to look to open outlets in lower income urban areas.
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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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