PROSPECTS AND OPPORTUNITIES
Discounters expected to continue to face strong competition from other retail channels
The realistic expectation is for a continued current value decline for discounters in Brazil in 2025, as the consumer perception is that stores are poorly maintained, and weak outlets have been closing. In addition, competition from neighbourhood supermarkets, and high-street convenience retailers (particularly from OXXO’s aggressive store openings, and those in condominiums in residential buildings) may further influence the buying habits of consumers, who are likely to choose comfort, security and convenience.
The future of the discounters business model may be defined in the coming years
The future of Dia Brasil is in MAM Asset Management’s hands. It remains to be seen what it will do with this chain of stores – whether it will manage it to make it more profitable and keep it, or whether it will just prepare it for future sale.
Not very optimistic expectations for discounters in the forecast period
Precisely because the two main competitors in discounters – Dia % and Todo Dia – are in uncomfortable situations regarding their survival in the future, it is not expected that there will be a strong performance in the forecast period 2025-2029. In 2024, with the significant reduction in the number of Dia Brasil stores and the gradual reduction of the Todo Dia chain, an unattractive picture is being painted for this business model in the forecast period.
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Overview:
Understand the latest market trends and future growth opportunities for the Discounters industry in Brazil with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Discounters industry in Brazil, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Discounters in Brazil report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Discounters in Brazil?
- Which are the leading retailers in Discounters in Brazil?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How has the impact of COVID-19 and national lockdown impacted consumer demand?
- Which formats have benefited the most from stockpiling and enforced home seclusion?
- How will the wider economic impact of COVID-19 shape the retail landscape in the future?
- Where is future growth expected to be most dynamic?
Discounters in Brazil - Category analysis
KEY DATA FINDINGS
Poor performances and changing strategies lead players to reduce their presence in discounters
Major players in discounters face an uncertain competitive landscape
Costs rise more than profitability in the post-pandemic period
Discounters expected to continue to face strong competition from other retail channels
The future of the discounters business model may be defined in the coming years
Not very optimistic expectations for discounters in the forecast period
Retail in Brazil - Industry Overview
Retail in 2024: The big picture
Mergers and acquisitions by strong companies impact retailing in 2024
Warehouse clubs increase their revenue
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Carnival
Consumer Day
Mother’s Day
Father’s Day
Client Day
Children’s Day
Black Friday and Cyber Monday
Christmas
Summer
Back to school
DISCLAIMER
Discounters
Discounters are chained retail outlets typically with a selling space of between 400 and 2,500 square metres. Stores have a primary focus on selling a limited range of foods, beverages, tobacco and non-groceries at budget prices, regularly via private label. Discounters can be classified as hard discounters and soft discounters. Hard discounters, first introduced by Aldi in Germany, are also known as limited-line discounters. Stores are typically 400-900 square metres and stock fewer than 1,000 product lines, largely in packaged groceries. Product range available is predominantly made up of private-label brands. Soft discounters are usually slightly larger than hard discounters, and are also known as extended-range discounters. Stores typically stock 1,000-4,000 product lines. As well as private-label and budget brands, stores commonly carry leading brands at discounted prices. Example brands include Aldi, Lidl, and Dia.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Discounters research and analysis database.
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