Variety Stores in Colombia

2020 IMPACT

Stores adapt offer to demand during the pandemic

Traditionally, most variety stores in the Colombian market have been family driven entrepreneurial initiatives with a strong impact in neighbourhoods in which they perform as independent small grocers as part of a diverse ecosystem of traditional stores. These stores form an essential part of the social network in their local communities.

Major chains look to build presence in Colombia

While the variety stores channel remains highly fragmented and dominated by small independent players, the three years before the COVID-19 pandemic witnessed the arrival of two major chained players in the Colombian market: the Salvadoran company, Dollar City, and the Chinese player, Miniso. Miniso has maintained its expansion in Colombia and has reached the key cities in the market.

Miniso meets positive reception form Colombian consumers

Miniso entered Colombia in 2018 with its flagship stores concept, offering a diverse assortment of inexpensive but high volume products for personal and home use. The brand’s stores have been very well-received by Colombian consumers, enabling it to extend its store network to more than 60 outlets throughout the country.

RECOVERY AND OPPORTUNITIES

Potential for further development of major brands

In recent years the variety store channel has grown and seen its competitive landscape diversified by the arrival of major brands, including CasaIdeas from Chile, Dollar City from El Salvador and Miniso, a Japanese-inspired Chinese brand. Many of these stores have grown significantly on the back of offers perceived to combine low prices with good design.

Domestic brands working to build presence

Domestic brands such as Magasin and Leaves are also working to build a presence in variety stores in the Colombian market, focusing on a diverse offer and design-orientated proposal. The combination of the expansion of multinational brands and domestic chains is likely to lead to some consolidation in variety stores during the forecast period.

Channel suffers from reputation problem

Although variety stores has become a more important channel in recent years, it carries a reputation from the past for informality, illegality and disorder. Areas such as El Hueco, Novena and San Victorino usually house this type of store, but they are also known for commercialising contraband products, counterfeit and pirated brands, and for being surrounded by large numbers of street vendors.