Distribution Networks in Argentina
Types of Outlet
- Hypermarkets, supermarkets and mini-markets
Located on the outskirts of towns. They sell foodstuffs and non food products. Mini-markets are smaller and located in town.
Carrefour, Jumbo, Yaguar
- Specialized Hypermarkets
Hypermarkets specialized in one family of products.
Easy for DIY
- Department stores
Shopping malls in the town center.
Galeria Pacifico, Galeria Alto Palermo(in Spanish)
- Hard discount
Mainly for food. They sell products of the distributor's own brand or no brand at all. People prefer them for their discount prices.
- Small shops
Specialized local shops: grocer's, butcher's, fishmonger's, greengrocer's, cheese shops, delicatessens, baker's, cake shops, florist's. People prefer them for the quality of their products, human contact and advice.
Evolution of the Retail Sector
- Growth and Regulation
- The modernization and restructuring of distribution networks, which started at the beginning of the 80's, has accelerated with the setting up of the stabilization plan. The growing place taken up by mass distribution has led to a big reduction in retail trade. The development of mass distribution has led suppliers to adapt to the demands, especially regarding tariffs, which are imposed on them. On the other hand, mass distribution is behind in the distribution of services, sport, furniture or mail order, which are little or not at all developed. Sales in Argentine supermarkets rose by 22.8% in 2007. Invoicing which takes into account the effects of inflation was nearly 1.2 billion dollars. Shelf prices increased by 10.9% over this period.
- Market Shares
Argentine mass distribution is dominated by the French company Carrefour which introduced this new type of store to the country at the beginning of the 80's. Among the 7 leaders are 2 local chains, Coto and La Anonima, followed by the Dutch group Ahold.
New intermediaries have appeared to negotiate with mass distribution, overshadowing the traditional wholesalers.
At the same time, a new type of distributor-wholesaler has developed: traders who, searching the whole world for products with the lowest price, allow the big distributors to set up promotional operations. Carrefour and Norte together represent 30% of market share with 200 stores, Jumbo and Disco 23% with 233 stores and Coto 16% with 102 stores.
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