In the first week of April 2021, El Salvador, Nicaragua, Honduras, Dominican Republic and Guatemala were the countries in the region where the number of people visiting establishments identified as supermarkets was higher than the figures reported before the pandemic.
Over the course of the months and in the context of the reactivation of commercial activities, more Central American consumers have visited locations identified as supermarkets and pharmacies.
At the end of January 2021, Nicaragua and El Salvador were the only two countries in the region where the number of people visiting establishments identified as supermarkets was similar to the figures reported before the pandemic.
As the months have gone by and in the context of the reactivation of commercial activities, more Central American consumers have visited locations identified as supermarkets and pharmacies.
Typical frozen foods, traditional beverages from the countries of origin and vacuum-packed fresh vegetables are some of the products that have sales growth potential in U.S. supermarket chains.
There are many opportunities for companies in the region, since it is estimated that two out of every three products placed on the shelves of U.S. supermarkets are of Latin American origin.
Designing or adapting properties to be of mixed use, offering more entertainment options and mixing in an adequate way the type of tenants to whom the premises will be rented, are strategies that could give a new boost to shopping centers.
The pandemic drove consumers away from shopping centers, as government home quarantines in the region, the rise of e-commerce, and bans on people from visiting these facilities significantly affected mall operations.
Following the implementation of the economic reopening process, in early November in some countries of the region the number of people visiting establishments identified as supermarkets was similar to the figures reported before the pandemic.
In mid-April 2020, the concentration of people in residential areas of cities reached its highest level, a situation explained by the mobility restrictions imposed by the covid-19 outbreak.
Maintaining proper inventories to meet demand, having a robust logistics system and an electronic sales channel that protects your customers when they make a purchase, are part of the challenges that businesses face in this new reality.
With "Black Friday" and Christmas approaching, commercial establishments in the region are beginning to apply their sales and promotion strategies, with which they will try to recover part of their income.
Greater preference for private brands, less use of cash and fewer purchases but in higher volumes, are some of the characteristics of current consumer behavior when it comes to demanding mass consumption products.
In this new business scenario, market research companies continue to focus on understanding the new consumption habits of people in all countries in the region.
The change in consumer habits resulting from the boom in e-commerce and the preference for avoiding visits to physical stores, has forced some large commercial surfaces to be transformed into storage and logistics areas.
The covid-19 outbreak caused the emergence of a new commercial reality, in which consumers are less willing to go to physical stores to make certain purchases and prefer to store online.
As part of the gradual reopening of commercial activities, an increase in the number of people who have moved to locations identified as supermarkets or pharmacies was reported in Central American countries during August.
Due to the quarantines decreed by the covid-19 outbreak, in mid-April the concentration of people in residential areas of cities reached its highest level, but in recent months this trend has been reversed and consumers have visited more stores. During August, the process of returning to supermarkets accelerated in most markets.
The abrupt change in consumer habits forced companies to digitalize their operations and sales, but the challenges do not stop there, as companies will have to implement effective logistics systems to reach their customers.
Until the beginning of June, Central American countries reported a rise in the number of people who moved to locations identified as supermarkets or pharmacies, however, in recent weeks the trend was reversed.
According to data from Google incorporated into the "System for monitoring markets and the economic situation in Central American countries", developed by the Trade Intelligence Unit of CentralAmericaData, in Panama, where due to the spread of covid-19 the measures of isolation and restriction of mobility have begun to harden in some areas, it has become evident that as of June 24th the visits to establishments identified as supermarkets or pharmacies have fallen.
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.
Using technology to measure the flow of visitors, reducing the furniture available in the food courts and implementing product deliveries in the parking area are part of the changes that the region's shopping centers must apply in this new reality.
Because of the threat of the spread of covid-19, since mid-March in Central America, the authorities agreed to close the shopping centers.
In recent weeks, Central American countries have reported an increase in the number of people who have moved to locations identified as supermarkets or pharmacies.
Due to the quarantines decreed by the governments of the region because of the covid-19 outbreak, in mid-April the concentration of people in residential areas of the cities registered its maximum level, but in the last weeks this trend has started to reverse, as consumers have visited more shops.
Considerable investments in the digitalization of operations, the closure of small stores and the expansion of the commercial area of the best located sales points, is part of the strategy that companies are beginning to implement in the new context of business transformation.
Managers of large corporations agree that several companies were already making progress in digitizing sales and operations, but the pandemic ended up persuading decision makers of the need to focus on online sales, and simultaneously accompany it with a plan to transform physical stores.
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