Traditional Grocery Retailers in Venezuela

PROSPECTS

Traditional channel better supplied than modern channel in 2017

Since 2016, traditional grocery retailers enjoyed a better supply of products than supermarkets and hypermarkets. Importers, manufacturers and distributors continued to increase the delivery of products to the traditional channel since it reaches low-to-middle-income and low-income areas and small towns and rural areas of the country, and gained importance due to high inflation.

Traditional channel meets specific needs

Traditional grocery formats continued to take value share from modern retailers, a trend that started in 2015. This channel comprised of independent, small players that offer less comfortable spaces and narrower product lines but allow consumers to purchase smaller quantities than they would at a supermarket.

Shortages of inputs cause government intervention to increase

At the end of the review period the strong scarcity caused new trends. Since government supervision focused on modern retailers, particularly chained brands, independent small grocers took advantage of the scarcity and commonly resold products purchased at regulated prices at chain stores at significantly higher prices to final consumers.

COMPETITIVE LANDSCAPE

Bakeries and kiosks are the largest component within traditional channel

Panaderias (bakeries) and liquor stores were the largest channels in food/drink/tobacco specialists in 2017 after reaching a peak in 2015, when supply to independent small grocers reached critical levels. This traditional channel performs well because it is a widely accepted format that satisfies frequent, common needs of Venezuelan households.

Stratification of bakeries becomes more apparent in 2017

In general, panaderias offer cafeteria and bakery fast food items such as sandwiches and croissants besides bread, cakes and pastries. In 2017, most were single establishments but there were some chain stores, such as Panadería Danubio with five locations in Caracas.

Independent small grocers gains share in 2017

Specialty food stores such as butchers, fishmongers and cheesemongers continued to slowly disappear from large urban areas but retained a presence in areas closer to the sources of products, such as coastal and agricultural areas. In larger cities fish and meat products were typically distributed through supermarkets and a few small independent grocery outlets.

Files are delivered directly into your account within a few minutes of purchase.