Peru flag Peru: Buying and Selling

The distribution network in Peru

Evolution of the Sector
Peru’s food retail sector sales will rebound in the medium-term, the GDP growth forecast of 4,2% in 2018 is contingent on an aggressive fiscal stimulus by the Government Convenience stores are becoming the retail format of choice for retailers aiming to reach 1,000 outlets in three years. FAS Lima foresees opportunities for ready to eat and/or cook products. FAS Lima forecasts total retail food sales to reach $22.2 billion in 2017. Of that total, some $3.7 billion, or about 18%, will be in supermarket sales.

There are three main supermarket chains in Peru: Cencosud (Wong and Metro), Saga Fallabella (Tottus) and Supermercados Peruanos (Vivanda and Plaza Vea). The market includes 252 conventional supermarkets and superstores, with 169 alone in Lima and 111 convenience stores with two outside of Lima. Conventional supermarket chains and convenience stores are expanding into Lima’s lower-middle income districts as well. These retailers benefit from consumers’ improved access to credit, through which they entice buyers with deep discounts on certain items when utilizing store credit cards.
While the traditional channel holds approximately 80% of market share, the modern channel has experienced a high rate of growth in recent years. In 2017, conventional supermarket chain growth was projected at 4,3%. Conventional supermarkets are still reporting profits because of the maturity of some of their outlets that opened in 2016 and 2017 and an aggressive discounting campaign to encourage sales. The expansion of the modern retail channel has not been entirely detrimental to traditional channel growth. Competition between these two channels occurs in specific categories. A growing middle class enabled supermarket chains to expand rapidly over the past ten years. The traditional, consisting of independent small grocers, target a large consumer base formed by low- and middle-income consumers. They offer a good mix of mid- and low-priced brands in small packaging sizes to favor sales to people with a small daily budget. Proximity is also a highly weighted feature within this market segment.

The Global Retail Development Index (GRDI) report made by A.T. Kearney’s ranks Peru as the 9th developing country for retail expansion worldwide. The report states that Peru’s retail sector is entering its peaking and displaying consistently strong fundamentals to attract new competitors.
Market share
There are three main supermarket chains in Peru: Cencosud (Wong and Metro), Saga Fallabella (Tottus) and Supermercados Peruanos (Vivanda and Plaza Vea). In 2019, the mass retailer market consisted of 259 supermarkets and superstores, including 179 in Lima, and 640 convenience stores, two of which are outside Lima (USDA, latest data available). Conventional supermarket chains and convenience stores are also found in lower-middle-income neighbourhoods of Lima. These retailers offer better access to consumer credit, which encourages shoppers to benefit from significant discounts on certain items when using store credit cards. While traditional stores accounted for over 75% of the market share in 2019, modern mass retail has grown strongly in recent years (USDA, latest data available).
Retail Sector Organisations
Informations about retail in Peru
Ministry of Economy and Finance of Peru
Chamber of Commerce of Lima

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Latest Update: July 2022

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