Brazilian Groceries: The Price-Quality Battleground
Despite its less discretionary profile within the retail universe, a decline in Brazil’s total real disposable income could be a headwind for retail food sales. People continue to look for better value propositions and prices when shopping for groceries, and the C&C segment could continue to gain share of wallet and penetration within the retail food market.
According to the Brazilian Association of Wholesalers and Cash & Carry (Abaas), there are currently ~1,400 C&C stores. In this highly competitive segment, the first mover has the advantage. @Marcella Recchia and team estimate there is room to open a considerable number of new C&C stores in the country over the next five years.
We calculate the implied number of new C&C stores (at a mature level) based on the market size projected by Euromonitor. We review calculations suggesting potential ahead for C&C in the coming years and examine the limitations of our analyses using store and sales area penetration methodologies.
We detail each company with unicorn status at the end of 2021 and the end markets in which they operate, looking at the disruptive factor they pose to incumbents. Moreover, we also provide more detailed profiles of 91 European unicorns, combining the public information available with the insights of our industry analysts to give an overview of their business models and the cumulative funding they have raised up to Q1 2022 and their competitive positioning.
In our recent investor conversations, the Offprice sector is the most debated subsector in Softlines. Near-term industry data, read-throughs, and channel checks inflected several times through the first quarter, between periods suggesting improving trends, only to be followed by periods looking like low-income spending power constraints and reduced inventory availability, setting low-confidence expectations.
With rising crime, increased scrutiny is falling on police response. Given recent impacts from heavily publicized events, staffing challenges at police departments, and increased public safety spending via state/municipal/federal sources, technology-enabled solutions have strong potential to improve public safety.