Modern and sophisticated retail formats are increasingly favored by consumers and growth is expected mainly in the hypermarket and smaller supermarket or express store formats.
Colombia is planning to add to the existing 156 centers 41 new projects by 2017, but there is room for growth. Competition is growing exponentially with entry of outside developer and retailer groups.
Ken Research recently published a report on, “The Future of Retailing in Colombia to 2020; Comprehensive data overview of the market, with retail sales value and forecasts to 2020” which discusses detailed analysis of retail sector and the leading players. It also provides information about the Colombia retail sector value chain. This report provides an in-depth quantitative insight of past and future trends crucially of retail sales data not just by channel and by product but showing product sales through different channels. Report sheds light on how the existing players can use this information to gain the competitive edge in the market. Additionally, major trends and drivers have also been covered, describing the market penetration and future potential of the industry. The report enables the reader to interpret future outlook on how the market will shape up by the end of this decade.
Specialist retailers hold the dominant share of retail sales in 2015 and are expected to lead the market in 2020. During 2015-2020, online channel is set to grow swiftly while food and grocery was the largest category group in 2015 and is expected to retain its position over the next five years. Colombia retail market has become one of the most suitable markets of Latin America. The country has moved far from the days of economic and socio-political bedlam. Colombia has huge investment flow in the form of Foreign Direct Investment. According to statistics, Colombia has been ranked as the second-most promising country in Latin America for the coming years. It offers a pro-business environment without protectionist barriers. It is the third most populated country in Latin America after Brazil and Mexico. According to the United Nations, Colombia has a population which is mostly young, urban and economically active. There are larger international and domestic players such as Exito (Casino), JBO, and La 14 which are using both small (300-500 sq m) and large hypermarket formats to target middle-class customers in the medium and large cities. Domestic players such as Surtimax, Carulla & Pomona are trying to target smaller towns and take away market-share from informal retailers, According Ken Research.
There have been recent market entries from foreign developers which include Parque Arauco, Grupo Roble and Spectrum who are bringing corporate-owned style projects and a drastic change to the traditional condominium shopping center format. Falabella, Ripley, La Polar, Office Depot, Esprit, Bimba & Lola, Desigual, are among the most active brands taking solid positions in Colombia’s market whereas Gap and Forever 21 are considered one of the latest and most notable entries of Bogota. Colombia has moved at an enormous pace to increase both security and political stability which in turn has helped augment purchasing power and prosperity of the remarkably diverse country, termed as the second biggest on the continent , According Ken Research