Retail Trends

In an online press conference, Emerson Destro, president of the Brazilian Association of Wholesalers and Distributors of Industrialized Products (Abad) points out that, with the pandemic scenario, the phenomenon of trade down is occurring. "Our challenge going forward is to keep up with the variation in consumer taste, how it will behave from now on. It's experiencing an increase in unemployment with consequences on purchasing power. This basket of products is going to need to be supplied somehow. So we already notice a change in the profile and habit of the consumer, exchanging products for cheaper brands. This has already begun to happen." It is noteworthy that the own brands are not yet representative in the billing sector. In wholesale with delivery, for example, they do not reach 10% - 9.1% - and mean 5.2% in wholesale distributor. Abad has created a campaign to strengthen the neighborhood retailer and highlights the intensification of this business model. "We created an 'All for Small Retail' campaign, focusing on valuing and strengthening small neighborhood retail. This situation of social isolation made, of course, people look for the nearest grocery store. This pandemic has accelerated a process that has been happening, for a long time, but consistently now in recent months of the strengthening of small and medium retail", says Destro.