Page 30 - PET worldwide issue 01/2022
P. 30

Distribution








                                      The retail trade in



                                      South America






                                      In South America, the pet food sector is expected to grow by
                                      eight per cent, especially in Brazil and Mexico. Diana Mercado

                                      provides an overview of the various forms of retailing there.



                                                                                              Laika is an online pet supplies
                                                                                             retailer in Mexico that also oper-
                                                                                             ates a delivery service. The com-
                                                                                             pany has expanded and now
                                                                                             has stores in a number of South
                                                                                             American countries. It is normal
                                                                                             for physical stores to have an on-
                                                                                             line presence also. In Brazil, for
                                                                                             example, PetLove has switched
                                                                                             from bricks and mortar stores to
                                                                                             e-commerce.


                                                                                             Retail formats
                                                                                             The “corner shops” are scattered
                                                                                             across the  suburbs and  sell a
                                                                                             large number of products for
                                                                                             daily use. Their clientele is made
                                                                                             up of the lower middle classes.
                                                                                             According to the Merca 2.0 study,
                                                                                             the customers are 30 years of age
                                                                                             on average and they spend just
                                                                                             three minutes in the store. 87 per
           Customers buy certain products in   According to the results of the   This function is fulfilled in Mex-  cent of them usually visit alone
           bulk in the supermarkets.  2019 census, over 998 000 re-  ico primarily by so-called corner   and buy via this channel 39 times
                                      tail companies exist in Mexico   shops, supermarkets like Che-  a month.
                                      alone, and most of them also   draui, Soriana, Oxxo and Extra,   There are not so many speci-
                                      sell pet food. There are a num-  and the aforementioned multi-  ality stores and veterinary prac-
                                      ber of store chains across South   nationals. One thing common to   tices in each part of town. These
                                      America that offer consumers a   all of these retail channels is the   concentrate on pet health and
                                      wide variety of pet food. In Bra-  wide range of imported and do-  care, providing a personal ser-
                                      zil, these are national companies   mestic products on sale. Count-  vice and selling accessories,
                                      such as Magazine Luiza and Lo-  less shops specialise in selling   medicines and special food.
                                      jas Americanas, along with mul-  pet products and also offer vet-  The age range of customers of
                                      tinational companies like Carre-  erinary services, grooming and   these businesses is wider; they
                                      four, Wal-Mart and Sam’s Club.   cosmetic products.    are generally upper middle class



           30                                                                                         PET worldwide 1|2022




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