Free brands steal customers from small stores

Las Corner stores lose ground to supermarkets and discount stores, whose hook is own brandsits main characteristic being the low price.

Small local businesses have been losing ground, going from representing 38% of total grocery sales in Latin America in 2013 to 30% in 2023, displaced by modern food channels, including discount stores, characterized by low prices. and strong private label offers,” Euromonitor revealed.

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The consumption analysis firm detailed that the convenience stores They are also contributing to the growth of private brands in Latin America.

The Mexican brand Oxxo has been the main driver of this growth. With a portfolio of more than 25 private label lines, it has grown from 10 thousand points of sale in the region in 2013 to almost 20 thousand in 2023. It has expanded from Mexico to Brazil, Chile, Colombia and Peru, reaching 66% of the total convenience.”

In Mexico, there are several companies that are looking to take advantage of the opportunity that discount stores represent, which is why the companies participate in this segment. gropes 3B, Waldo’s, Neto and Bara (belonging to FEMSA).

In addition to this, chains like Walmart, Soriana, Chedrauiamong other, They have their own brandswith which seek to gain greater customer loyalty and also increase sales.

Retailers launching private label options are taking advantage of the opportunity to improve margins, increase consumer loyalty and have better control over their supply chains,” Euromonitor detailed.

He mentioned that, in some markets, the participation of private brands in products such as milk, edible oils or non-perishable fruits represents more than 50% of sales. In other categories, retailers still have room to launch private label options.

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