The Discount Retail Chain phenomenon keeps brands, traditional supermarkets and local shopkeepers (tiendas) awake at night in Colombia. The discount format during 2024 not only confirmed that it is redefining the behaviour of the Colombian shopper, but it is challenging commercial brands and traditional shopkeepers to rethink their value proposition.
If you thought the Hard Discount was just a place to save, think again! This format continues to break paradigms and tighten belts, both for shoppers and brands. Here are some of the insights that 2024 left us:
Price variation:
While inflation tried to set the market on fire, the Hard Discount brought out the fire extinguisher. With an annual variation of -0.47%, this format continues to show that saving is not out of fashion. (Dec/24 vs Dec/23)
Categories that lifted the mood (and prices):
Table chocolate (+38%) decided to be the "luxury" of breakfast, while salt (+9.6%) and alcoholic beverages (+9.6%) make even the party cost more. Of course, milk cream (+9.4%) also contributed!
Categories in bargain mode:
Eggs (-25.6%) are so cheap that they seem to be in permanent supply. Flours (-14%) and liquid milk (-10.4%) remind us that there is still relief for the basic basket... at least in this format.
The shopper speaks clearly:
Proximity, good prices and practical formats are the winning trio for the Hard Discount to remain the king. Of course, supermarkets and neighbourhood stores are claiming their share of the pie.
Hear this English podcast from Olivia Gonzalez on how the Colombian retail market is evolving: https://www.linkedin.com/posts/oliviagonzalez-_insights-del-hard-discount-2024-el-fen%C3%B3meno-activity-7282386334185394176-DVkd?utm_source=share&utm_medium=member_desktop
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