Retailing in Peru

Dallas, TX -- (SBWire) -- 01/13/2012 --Sales continue to increase - 2011 was a year in which Peruvian consumers continued to benefit from higher purchasing power, which allowed them to increase their expenditure on both basic and non-essential items. 2011 was a year of presidential elections, but after President Ollanta Humala was elected, and stated that the legal framework for investing would remain unchanged, most businesses resumed their investment projects, as they perceived a remarkable opportunity to continue developing the market. Most expanding retailers focused on opening outlets in provinces where there was significant untapped demand.

Chains focus on gaining market share
Chains benefiting from strong financial resources made it a priority to improve their penetration by carrying out different strategies.

Besides expanding through previously untapped cities in Peru, they continued to negotiate better financial options for their customers with banks, and offered special promotions when using a store credit card in order to cultivate brand loyalty. In addition there were efforts aimed at providing consumers with a mix of products which responded to their needs. For instance, the launch of Economax discounter was well-received; this is the first discounter in the local market which carries the features of an independent small grocer, a market stall and a traditional discounter.

Non-grocery retailers successfully face a challenging environment
Non-grocery retailers face strong competition both from the illegal market, through pirate and adulterated products, and from modern grocery retailers, which have widened their range of non-grocery products. These include electronics and appliances, home furnishings and stationery, offered with attractive credit options or price discounts. Nevertheless, non-grocery retailers have been innovative by focusing on creating loyalty schemes, offering credit payment options with an interest-free period, increasing the range of products offered, catering to more demanding consumers, and improving the knowledge of their sales force so that they provide the best product advice to their customers. All of these strategies allowed non-grocery retailers to register healthy rates of growth during 2011.

Traditional grocery retailers remains the preferred channel
In Peru, independent small grocers, traditionally known as bodegas, and other grocery retailers, represented by market stalls and street vendors, continued to account for the largest proportion of sales within retailing. The high penetration achieved by these channels can be explained by their proximity to households, their offering of small packaging formats which allow low-income consumers to make daily purchases, and their knowledge of Peruvian consumers’ preferences. Nevertheless, in the face of the development of modern grocery retailers, independent small grocers are gradually incorporating more services, such as recharging prepaid mobile phones and the payment of public services bills, thanks to the installation of special bank units in these outlets. In addition, “smart kiosks” were launched in 2011, also providing bank operations; this initiative was well-received by consumers in search of channels which provide convenience.

Healthy growth is expected for retailing over the forecast period
Retailing in Peru is expected to continue to develop, favoured by the good performance of the economy, which will allow middle-income consumers to increase their expenditure on non-essential items, as well as increasing the frequency of such purchases. Moreover, the expansion of the chains in leading cities and second-tier cities in the provinces will allow more consumers to gain access to more channels.

Finally, time restrictions will mean that consumers turn with more frequency to those retailers which better satisfy their demands for convenience.

For more details, comprehensive Table of Contents or to Request a Sample for this report, visit http://www.reportsnreports.com/reports/144580-retailing-in-peru.html or contact sales@reportsandreports.com.

About ReportsnReports
ReportsnReports.com is an online market research library of 140,000+ market research reports from over 100 leading global publishers & in-depth market research studies of over 5000 micro markets.