Wednesday, March 21, 2018

E-retailing to Restrain the Convenience Store Market in Argentina-Ken Research


The report titled “Convenience Stores in Argentina” provides a comprehensive analysis of convenience store in Argentina, growth of the convenience stores, major developments, leading players in convenience store in Argentina, online retailing and future of convenience store in Argentina.
Overview of Convenience Stores: A convenience store is a retail store that consists of range everyday items such as groceries, snack foods, confectionery, soft drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, magazines and many more. Few convenience stores are licensed to sell alcohol, beer and wine along with money order and wire transfer services. These convenience stores may also be part of a gas or petrol station so that customers can purchase any desired goods conveniently while filling their vehicle with fuel. Majority of the convenience stores charge higher prices than any other conventional grocery stores or supermarkets. These convenience stores order smaller quantities of stock and sell at higher prices by having longer open hours, more locations, and shorter cashier lines.

Leading player is Carrefour Express: Carrefour Express is another leading chain of private label convenience store in Argentina that launched a strong price campaign. This store offers 1,300 products that are part of the basic food needs and the price campaign is the best contribution offered to the country’s family economy. The price campaign was to freeze the price of the private label products for six months. Carrefour Express represents very few promotions and in Carrefour hypermarkets and supermarkets, there are constant promotions on weekends when consumers purchase more than one unit of the same product. Carrefour Express has almost 400 outlets and possess a successful convenience stores from almost a decade ago. With the existence of Carrefour Express, it is complicated for other companies to enter the convenience store market. Big retailers such as Jumbo and Walmart have started few outlets with much smaller stores in strategic zones. The other outlets are still very few compared with Carrefour Express.
Majority of the shoppers in Argentina are interested in branded products. This resulted in the expansion of convenience store named Walmart and increase in the number of shoppers in the country. Consumers in Argentina are increasingly buying country branded products as the overall quality has improved and are at affordable prices.  Walmart targets prices 20% lower on own brand than on leading brands. These have been reported as accounting for 13% of overall company sales, but Walmart sees potential for this to grow significantly higher in the longer term. Clearly, the strength of DIA, and its own brand led offer, is changing the role of private label for many shoppers. Walmart, like other retailers, will look to strengthen its own penetration in private label off the back of this.

Future of Convenience stores in Argentina: It was observed that other retailers are offering more discounts and luring consumers away from the convenience stores. Therefore, the growth of convenience store outlets in Argentina is slowing down as consumers in Argentina are more demanding and cautious about their purchases made. There was a fall in the mass consumption in the recent years that has affected even the basic dairy products in the country. With the decrease in the consumers’ disposable income, majority of the consumers are opting for cheaper wholesale chains such as Vital, Diarco, Maxiconsumo and Makro. These stores were redesigned to attract consumers with a mix of cheaper products than those found in other grocery retailers and convenience stores. E-retailing has witnessed a drastic growth over the recent years and consumers find it easy to order products online. The convenience stores market in Argentina will surely witness a slow growth over the next few years due to the popularity of internet retailing.

Key topics covered in this report:
Convenience Stores Market Argentina
Argentina  Convenience Stores Market Analysis
Argentina Convenience Stores Outlets Market Report
Argentina Convenience Stores Forecasts Market Analysis
Argentina Convenience Stores Consumption Volume
Argentina Convenience Stores Value Sales
Argentina Convenience Stores Market Competition
Argentina Convenience Stores Market Trends
Argentina Private Label Convenience Stores
Argentina Convenience Stores Market Future Outlook
Argentina Convenience Stores Market Revenue
Argentina Convenience Stores Market Size

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Ken Research
Ankur Gupta, Head Marketing & Communications
0124-4230204

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