Retailing in Bolivia: Favourable economic conditions were reflected in more investments and expansion of retailers in 2015

 

Favourable economic conditions were reflected in more investments and expansion of retailers. In 2015, consumers continued to enjoy higher disposable incomes, which allowed them to buy new products, added-value products or increase their purchasing frequency.

Increasing consumerism

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The expansion of retailers contributed to higher consumer spending. Middle class consumers’ purchasing power increased and a new generation of consumers is attracted to status-symbol products. In both cases, consumers became more demanding and willing to pay for quality and added-value products.

Grocery retailers posts faster retail value growth than non-grocery specialists in 2015

Grocery retailers posted stronger current value growth than non-grocery specialists. Modern grocery retailers continued to expand in densely populated areas and developed outlet formats to meet the particular needs of neighbourhoods. While modern grocery retailers also offer benefits to retain consumers such as loyalty schemes or chances to win prizes such as holidays or cars, the most important factor driving purchasing is price. In addition, consumers are more informed about the benefits of particular sales channels and can choose.

Non-grocery competition increases

Retailing became more dynamic due to the entry of new non-grocery players such as apparel and footwear specialist retailers – players in the channel to seek to attract the largest possible number of consumers through promotions and discounts. In addition, grocery retailers such as modern grocery retailers and drugstores/parapharmacies continued to expand. Nevertheless, retailing has not developed CRM systems and promotions remain focused on price offers.

Retailing will continue growing over the forecast period

Retailing is expected to post h retail value growth of 7% at constant 2015 prices over the forecast period in Bolivia. Consumers are likely to shop more often with modern and formal retailers, thereby favouring growth in retailing. Nonetheless, the strong positioning of informal retailers in Bolivia is set to continue to attract low-income consumers. On the other hand, traditional retailers are likely to continue to leadretailing in Bolivia due to high penetration and low prices.

Source: Euromonitor International


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