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Chile mixed retailers market forecast to increase by 2% CAGR during 2014 to 2019

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PR-Inside.com: 2014-05-01 07:47:01
Considering the rapid growth of cities and municipalities that emerge in provincial areas, large chained retailers continue to organically expand their networks through the establishment of outlets outside of the metropolitan area. Mall operators in the country led by Falabella SACI and Cencosud Retail open shopping centres in the provinces, placing their department stores as anchor shops. Falabella SACI is expected to open new malls in 2013 with its Mall Plaza brand, particularly one in Valparaiso and the other one in Copiapó. These players understand that provincial areas are becoming lucrative venues for department stores, as these zones show an interesting bloom of suburban areas due the increase in disposable incomes.

Falabella SACI remains a category leader in 2013 with a 34% value share. The company is strongly positioned through its private label offer, promotions and wide product range. Falabella develops a cross-industry activity which is a result of a multi-channel strategy implemented in 2012. Advertising campaigns still aim at positioning the brand at an international level through the recruitment of celebrities and the quality, design and style of its private label.

The performance of mixed retailers is expected to record a 2% CAGR over the forecast period. Consumer expenditure is expected to slow down over the forecast period, as economic volatility of the Chilean economy will make Chileans more cautious. The scenario is set to see a higher propensity to save than that witnessed during the review period. Consumers will continue to seek value for money therefore companies will look to continue strengthening their private label offerings and discounting seasons to fit with this change in consumer behaviour.

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Mike King
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