Brazil Retail Report Q1 2015

Business Monitor International
January 7, 2015
61 Pages - SKU: BMI5432559
Countries covered: Brazil

Brazil Retail Report Q1 2015

BMI View: After sluggish growth rates were reported in 2014, our forecasts for the Brazilian retail sectorare optimistic for the next four years, as we expect to see positive growth following a rise in total householdspending bolstered by a growing and increasingly affluent population. In addition, as price remainsimportant to purchasing decisions, particularly to lower-income households, the number of discounters inthe Brazilian retail sector is burgeoning.

At present, the food and drink retail sector is comparatively well developed; inclusive of a range of retailersand retail formats which has led to relative saturation, and seen expansion of existing retailers andacquisitions more commonplace than new entrants. However, price sensitivity is becoming an everincreasingconsideration to purchases made in Brazil, particularly with those made by the lower-incomedemographics - which points to opportunity for investment in this sector. Retailers have seen a tendency forshoppers to buy in bulk if an item is attached to a promotion, which has led to an increasing number ofdiscount outlets emerging as the value of low pricing strategies has become apparent. Atacarejo is a partcash-and-carry, part discounter and part hypermarket which has seen success over the last year due to itsattractive pricing strategies. The attractiveness of such stores has ramped up demand for more discounters inthe country, paving the way for investment in partnerships and expansion.



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