Retail: Traditional Channels and Consumption Patterns

The restrictions on mobility decreed in the region open up new opportunities for sales points such as small self-service shops, grocery stores and corner shops, which can make use of home delivery service schemes to boost their sales in this context.

Tuesday, April 14, 2020

In the current context of health crisis, large supermarket chains have implemented safety and hygiene protocols, which force consumers to assume long waiting times to do their shopping.

See "New Commercial Reality: How to Reach Customers"

While this is happening in large stores, small grocery stores in Costa Rica report a considerable increase in sales in recent weeks, behavior that owners associate with the quarantine decreed in the country and the preference of consumers to buy in establishments closer and less crowded.

Also see "What is the Consumer with High Purchasing Power like?"

Mauricio Ramirez, manager of Fundes de Costa Rica, told Nacion.com that the grocery stores "... are facing different challenges, but one of the main pieces is the delivery service". This is complicated because more than half of these stores are served by only one person.

Because the costs of digital home delivery applications are up to 25% of the total purchase, a proportion that is usually above the profit margins of the grocery stores, there is an opportunity for new ventures.

Ramirez added that "... So, if there was a third party venture, it would be the ideal solution. Here is an opportunity for entrepreneurship or business."

In this scenario of changes in consumer habits, CentralAmericaData has interactive maps with information on the location of consumers, their characteristics and purchasing power, the market potential for home delivery in an area, delivery times and other data, for any city in the region.

Click here to request more information about the interactive maps of all the cities in Central America.



More on this topic

Retail: Challenges of the On-Site Experience

July 2020

Given the gradual return to physical stores, customers will appreciate it if businesses disinfect stores several times a day, if other visitors are required to clean their hands before entering, and if employees use protective equipment at all times.

Although in this context of the spread of covid-19, digital channels have gained ground in Central American markets and this trend is expected to continue in the coming months and years, there are commercial establishments that will have to adjust their face-to-face sales strategy to the demands of the new normality, since there will always be customers who prefer to continue shopping in person.

Retail, Mass Consumption and Commercial Channel

June 2020

Reaching consumers in a confined scenario has been a complex task for companies distributing mass consumption products, since the operation of some of the commercial channels has been limited in the region's markets.

In Panama, companies engaged in the wholesale distribution of food products such as oats, beverages, snacks and others have faced challenges during the weeks of home quarantine, which was decreed by the authorities following the outbreak of covid-19.

Visits to Quarantined Shops: Is the Trend Reversed?

April 2020

Between February 2020 and Easter Week, visits to shops decreased between 40% and 90% in Central American countries, but since April 13 a change in the trend has been observed, reflecting a greater movement of people to shops and other businesses.

According to the "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, Costa Rica is the country with the most pronounced change in trend, since as of April 12th the reported drop in physical visits to stores was 79%, while on April 17th the reported reduction was 57% from the levels prior to the health crisis.

Commercial Sector Begins to Suffer from the Crisis

March 2020

Because of the health crisis generated by the spread of covid-19, shopping centers, restaurants, clothing and footwear stores, among other businesses, began to report a decline in commercial activity in Nicaragua.

Not all businesses in the commercial sector have been affected by the advance of the pandemic, as in recent days’ supermarkets and pharmacies have been crowded by consumers.

 close (x)

Receive more news about Retail

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Soluciones D&B, S.A.

Organization that operates in Panama.
Phone: (507) 226 2663

Company Profile

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Aug 4)
Brent Crude Oil
44.120
Coffee "C"
120.5
Gold
1,977
Silver
24.505