Increasing the number of staff dedicated to delivering products to customers' homes and not making surcharges for the delivery service are some of the strategies that Costa Rican companies have applied to increase their sales in the new commercial reality.
Given the outbreak of covid-19, the health authorities have decreed home quarantines and the movement of the population has been restricted at certain times.
Changes in consumer preferences, which increasingly value ease, convenience and time savings in their purchases, are forcing companies to strengthen their online marketing channels to stay in competition.
Several companies that have not developed their digital marketing channels in time have gone bankrupt because of the growing competition represented by online sales.
In the last fifteen years, the herd in the country has grown 300%, and it is reported that in some store chains the demand for meat and other buffalo products exceeds the supply.
Between 2004 and 2019, the number of buffaloes has increased considerably, from 3,000 to 12,000 heads, and according to estimates by the National Technical University (NTU), there are currently some 270 production farms in the country.
The company Automercado plans to launch during the second half of the year a new sales point in Guayabos, Curridabat.
Representatives of the company informed that with the opening of the new Auto Mercado, they would be reaching 42 sales points, of which 19 are in the Greater Metropolitan Area.
The president of one of the largest supermarket chains in Costa Rica speaks about investments and the bureaucratic obstacles the sector has to deal with.
An article on Nacion.com contains quotes by Guillermo Alonso, president of Auto Mercado, who announced the investments to be made by the company in the coming years, noting that "... The truth is that we would like to go faster, but the block is the government and red tape that has left the company's growth plans stranded."
In Costa Rica sales generated by ready to drink tea rose from $14.6 million in 2007 to $39.2 million in 2012.
Elfinancierocr.com reports: "Although it began as a business which imported sports drinks in 1994, Corporación Desinid found its main niches in the manufacture of iced tea for industry". The powdered version of the product allowed it to link up with large chains such as PriceSmart with a private brand name which drove this growth.
The supply of ready made meals in supermarkets and convenience stores is growing at the same rate as consumer demand.
"Current labor demands, stress, the global crisis, security and the limited time available are some of the causes of these changes," said Christian Morales, commercial manager of Grupo Gessa (a conglomerate operating the supermarkets , Perimercados, Jumbo, Super Compro, Turribásicos and Saretto).
Ongoing and projected investments indicate that there is still room for small and medium enterprises.
Small and medium sized supermarket chains are expanding in the greater metropolitan area.
One example is Super Mora, a mini chain of supermarkets from Puriscal which in 2014 will be expanding into Santa Ana, where there are plans to invest $3.7 million in the construction of a 7000 m² square which will include a main supermarket, commercial stores and parking areas. Super Mora is known to be competing with Auto Mercado, which recently opened a 2,600 m² store in Escazu.
Both consumption and supply of these types of cheese has increased in recent years.
Adrian Alonso, director of operations for the Auto Mercado supermarket chain shares the vision of gourmet cheese producers, like Maritza Solano of Santa Cruz de Turrialba and Miguel Coronado Guard on the increased consumption of specialty cheese by Costa Ricans.
"Adrian Alonso, attributes it to new trends in consumption, such as with wines, where there is a desire to 'find the perfect marriage between food and wine'", reported Elfinancierocr.com
In Costa Rica the Auto Mercado supermarket chain has announced the opening of 18 "Vindi" convenience stores before the end of 2013.
The company opened its first store in San Joaquin de Flores, Heredia and the second opening is scheduled for next week in Santa Anta, Lindora.
"Guillermo Alonso, project manager of the company, told ElFinancierocr.com that at the end the year there will be six Vindi branches in the Greater Metropolitan Area (GAM).
In Costa Rica the small open-all-hours convenience store format is booming, with the entry of new players to the market.
The chain Automercados is to open convenience stores in a format which as yet is not known, although the company is currently building a dozen stores in several malls.
Diego Alonso, commercial vice president of Automercado told Elfinancierocr.com that more would be revealed about the topic in the coming days.
Certain chains are drowning out competition by making huge investments in opening new stores or by buying up other businesses in Costa Rica.
Gessa - owner of Peri, Jumbo, and Supercompro- announced this week its acquisition of Saretto supermarket, located in Escazu. The goal: to break into the premium products segment (gourmet imported), Saretto’s strong point, Guillermo Aguilar, general manager of the corporation, said to Nacion.com.
In Costa Rica, Megasuper, Walmart and AutoMercado are preparing to open more stores in the capital and surrounding areas.
Megasuper is to open three new stores in the capital with an investment of $30 million and the creation of 100 new jobs, said Walter Vega, general manager of the company.
Meanwhile, Walmart plans to invest $67 million in a new distribution center in Coyol, Alajuela, said Yolanda Fernandez, manager of corporate affairs for the firm, reported Nacion.com. This is added to the $5 million that went on the opening of the 28th branch of Mas x Menos in the country, in the canton of La Union.
The Automercado chain has announced the opening of four new stores this year and next.
Once permits have been obtained from the municipality of Santo Domingo de Heredia, construction of one of the new supermarkets will begin, said the chain's vice president Diego Alonso.
For 2013 plans include the construction of another store in the adjoining district of Alajuela in Guácima Hacienda Los Reyes.
Strategies and new low price offers are being prepared before the arrival of the Walmart name in the country.
The fight to win customers in an increasingly aggressive market has been reinvigorated in recent weeks, since the retailer Walmart decided to change the name of its supermarkets from Hipermás to Walmart.
This release was accompanied by reductions in prices for 4000 products, according to company representatives.