Tuesday, January 27, 2015

Markets are betting of large networks to grow

After moving to the country towns, large supermarket groups vying for the neighborhood market food and hygiene and cleaning products to hook consumers richer as the poorest. In 2014, the small neighborhood shops of large retailers were the most expanded sales, surpassing by far the performance of hypermarkets, supermarkets and small independent retailers.
Study conducted by Euromonitor consulting shows that the small shops of major retailers increased by 15% in dollar sales last year compared to 2013, while the turnover of hypermarkets, supermarkets and small independent retail grew 0.5%, 2.3% and 0.5%, respectively.
The neighborhood retail has a prominent position in developed countries, such as in Japan, where moved $ 113.5 billion last year. In the world, Brazil held the 12th position in the list of countries that have increased sales by 2014. Together, the small shops of the major networks, with up to 400 m², earned $ 250,1 million in the country. Until 2019, that figure can add up to $ 412,9 million, with a high of 64.7%.
Some factors explain this potential for growth: the consumer wants convenience when making purchases, without having to travel great distances to reach the market. In addition, the purchasing power of the population improved, especially with a greater number of women in the labour market. This is a very different scenario of 20 years ago, when the hypermarkets were the "darlings" of the consumer who, in practice, was a "Hunter" of offers to defend themselves against inflation of 40% per month.
According to the Director of proximity format of Grupo Pão de Açúcar, Renato Giarola, "neighborhood stores of large networks have emerged and are growing because of customer demand for practicality." The GPA targets this space the flags Minimarket and Extra Minute Pão de Açúcar.
Five years ago, Carrefour opened its store in the neighborhood, but gave up because, at the time, was not what the consumer wanted. The new onslaught in the sector occurred in August last year, with the banner Carrefour Express. Are 200 m² stores about 2.7 thousand basic items and fast consumption.
Carrefour doesn't reveal the plans for this format, but already has a unique distribution center able to meet 100 stores of this type. The group closed 2014 with four Carrefour Express. The format of the neighborhood was the most opened stores in 2014, after the atacarejo, mixture of wholesale with retail.
The Spanish network Day% is another that invests in neighborhood market with the new flag Day Market, which has 15 stores in operation in São Paulo.
O Estado de São Paulo News Item translated automatically
Click HERE to see original
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