Table of Contents
Executive Summary
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- The market
- The grocery retailing sector grew 8% in 2014
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- Figure 1: Forecast of Brazil retail sales of grocery retailing, by value, 2010-20
- Market drivers
- Brazil’s GDP has yet to show signs of recovery
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- Figure 2: IPCA monthly change, in %, January 2014-October 2015
- Companies and brands
- The grocery retailing sector is highly fragmented
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- Figure 3: Leading retailers in the Brazilian grocery retailing sector, by sales revenue, 2013-14
- Carrefour overtakes Grupo Pão de Açúcar
- Dia is one of the fastest-growing grocery retailers in Brazil
- More minor players are launching private label products
- The consumer
- Bakeries are almost universally used
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- Figure 4: Frequency of shopping at different retailers, September 2015
- Using low prices and deals to win clients over the competition
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- Figure 5: Important factors, September 2015
- Main reason to visit is to do the regular grocery shopping
- Consumers are looking for sales/bargains more than 12 months ago
- What we think
Issues and Insights
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- Promoting private label to consumers
- The facts
- The implications
- Boosting online grocery sales
- The facts
- The implications
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- Figure 6: Frequency of shopping at different retailers, any frequency, September 2015
The Market – What You Need to Know
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- The grocery retailing sector grew 8% in 2014
- The number of grocery retailer stores keeps growing
- Medium and small supermarkets hold the biggest share in value
- The grocery retailing market is estimated to grow 38% by 2020
Market Size and Forecast
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- Market performance
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- Figure 7: Retail sales of grocery retailing in Brazil, by value, 2010-14
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- Figure 8: Number of grocery retailers, Brazil, 2010-14
- Segment performance
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- Figure 9: Retail value sales of grocery retailing, by type of store, in R$ billion, 2013-14
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- Figure 10: Retail volume sales of grocery retailing, in number of stores, 2013-14
- Forecast for the grocery retailing market
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- Figure 11: Forecast of Brazil retail sales of grocery retailing, by value, 2010-20
Market Drivers
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- Brazil’s GDP has yet to show signs of recovery
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- Figure 12: Percentage variation in the quarter compared to the same quarter in the previous year
- Inflation is at its highest rate since 2003
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- Figure 13: IPCA monthly change, in %, January 2014-October 2015
- Unemployment keeps rising
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- Figure 14: Unemployment rates by quarters, Brazil, 2015
- Interest rate rises to hold back consumption
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- Figure 15: SELIC prime interest rate, annual percentage, September 2014-July 2015
Key Players – What You Need to Know
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- The grocery retailing sector is highly fragmented
- Carrefour overtakes Grupo Pão de Açúcar
- Dia is one of the fastest-growing grocery retailers in Brazil
- More minor players are launching private label products
Market Share
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- The grocery retailing sector is highly fragmented
- Carrefour gains the leadership in 2014 with 8.1% share by value
- Grupo Pão de Açúcar is expanding through small store formats
- Sustainable food truck
- Dia is one of the fastest-growing grocery retailers in Brazil
- Walmart is back on opening new stores
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- Figure 16: Leading retailers in the Brazilian grocery retailing sector, by sales revenue, 2013-14
- Figure 17: Leading retailers in the Brazilian grocery retailing sector, by number of stores, 2013-14
- Market share of new product launches
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- Figure 18: New product launches of private labels, Brazil, 2010-15**
- Figure 19: New product launches of private labels, by grocery retailer, 2011-15**
The Consumer – What You Need to Know
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- Bakeries are almost universally used
- Supermarkets and hypermarkets are still highly used
- Using low prices and deals to win clients over the competition
- A great customer service is essential in every outlet
- Main reason to visit is to do the regular grocery shopping
- Attracting consumers with new products
- Consumers are looking for sales/bargains more now than 12 months ago
Frequency of Shopping at Different Retailers
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- Bakeries are almost universally used
- Supermarkets and hypermarkets are still highly used
- The AB socioeconomic group visits most of grocery retailers more often than other groups do
- Click-and-collect to boost foot traffic in large format stores
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- Figure 20: Frequency of shopping at different retailers, any frequency, September 2015
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- Figure 21: Frequency of shopping at different retailers, September 2015
Important Factors
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- Using low prices and deals to win clients over the competition
- A great customer service is essential in every outlet
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- Figure 22: Important factors, by age, September 2015
- Creating pet-friendly outlets
- Increasing sales with free samples
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- Figure 23: Important factors, by age, September 2015
- Loyalty schemes still have low usage among shoppers
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- Figure 24: Important factors, September 2015
Reasons for Visiting
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- Main reason to visit is to do the regular grocery shopping
- Attracting consumers with new products
- Combining grocery shopping with other activities
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- Figure 25: Reasons for visiting, by age, September 2015
- Turning stores into collection points to increase foot traffic
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- Figure 26: Reasons for visiting, September 2015
Shopping Behaviors
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- Consumers are looking for sales/bargains more than 12 months ago
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- Figure 27: Shopping behaviors, by age, September 2015
- Coupons are still used by a minority
- The idea of self-checkouts is still looked down on
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- Figure 28: Shopping behaviors, by age and socioeconomic group, September 2015
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- Figure 29: Shopping behaviors, September 2015
Appendix – Market Size and Forecast
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- Figure 30: Value sales for grocery retailing, Brazil, 2010-20
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Appendix – Methodology and Definitions
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- Fan chart forecast
- Abbreviations
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