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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.

@Marcella Recchia