16 May 2011
3.3 Chile : Distribution and Import Channels
Contemporary Retail Landscape
According to Latin American standards, Chile’s retail sector is considered very concentrated and organised. As per latest available statistics, the Chilean retail sector is mainly composed of 94,958 small (mom and pop) shops, 15,453 local consumption stores1, 1,784 drugstores and perfumeries, 631 convenience stores, 689 hypermarkets/supermarkets, 353 department stores and 43 shopping malls. In the period 2003-2007, Chile’s retail sales recorded growth of 39%, demonstrating a CAGR of more than 8%. Stored-based retailing increased by 38% between 2003-2007, while non-store retailing (though insignificant in terms of market share) grew by 50% over the same period, with internet retailing demonstrating a CAGR of 45%.
|Retail Sales by Sector: 2003-2007 (in billion peso)|
Regarding market structure, the Chilean retail sector is basically concentrated in the hands of five giant retail groups, namely Cencosud, Falabella, D&S, Ripley and La Polar, which have many different kinds of retail operations including shopping malls, department stores, hypermarkets/supermarkets and home centres. Not only do these giant groups have a strong foothold in Chile, but also neighbouring countries such as Argentina, Bolivia, Colombia and Peru. For instance, Cencosud and Falabella have substantial investment in shopping malls and department stores in Argentina. Apart from retail business, also noteworthy is that these giant retailers have diversified their core businesses and moved into the business of extending consumer credit. It is estimated that the number of credit cards issued by these large retailers is more than three times higher than that of all the traditional credit card operators such as Visa, MasterCard and American Express in Chile.
|Major Retail Players in Chile|
|Shopping Malls||Department Stores||Hypermarkets / Supermarkets|
|Mall Plaza Vespucio||Falabella||Lider (D&S)|
|Parque Arauco||Almacenes Paris||Hipermecados Jumbo|
|Mall Alto Las Condes||Ripley||Santa Isabel|
|Mall Portal La Dehesa||La Polar||Montserrat|
|Mall Florida Center||Johnson’s||Unimarc|
|Mall Arauco Maipu||San Francisco|