Brazilians have experienced significant lifestyle changes in recent years, including the "urban exodus," which is the movement from large capital cities to smaller towns, primarily in search of a better quality of life. This movement has reshaped the retail market, creating a growing demand for solutions that are local, agile, and accessible, all aligned with the style and expectations of this new audience.
Hyperlocal retail, as this phenomenon has been dubbed, is based on the premise that both consumers and businesses look to what is nearby, thinking locally and prioritizing convenience and opportunities, respectively.
There are plenty of examples. Large chains like Grupo Pão de Açúcar and Carrefour are already investing in smaller formats closer to communities, such as Minuto Pão de Açúcar and Carrefour Express. Startups like the Swedish company Lifvs, with autonomous stores available 24 hours a day, or the Brazilian company Ame Go, which automates purchases with AI and Wi-Fi, show how convenience is transforming retail.
“The future of retail will be increasingly decentralized and connected. Stores don't need to be large, but rather agile, convenient, and adapted to local needs,” emphasizes César Baleco, CEO of IRRAH, a technology group specializing in solutions for the retail sector.
In addition to the large chains that have invested in local businesses, hyperlocal retail is also aligned with the growth of small businesses in Brazil, which represent the majority of recently opened companies. In September 2024, 349,500 new small businesses were registered, 96% of the total CNPJs (Brazilian tax identification numbers) created in the period, according to a survey by Sebrae (Brazilian Micro and Small Business Support Service) with data from the Federal Revenue Service. In the accumulated total for the year, 3.3 million new companies were opened, approximately 3.2 million of which were comprised of MEIs (Individual Microentrepreneurs), micro and small businesses.
According to Baleco, this transformation is likely to become even more pronounced. During the pandemic, 72% of Brazilians began prioritizing small businesses, and 80% stated that they will continue to support local establishments, according to Accenture.
"The future of retail lies in being close, agile, and above all, connected," he states, emphasizing that technology is no longer just a facilitator but a strategic differentiator for those seeking to stand out in this new market format.
And the ways to utilize this advantage are countless. “We cannot forget that the consumer is nearby, but also connected, and, despite being more likely to buy than those who are close by, faces often overwhelming competition in the virtual world. Given this, it is necessary for local merchants to leverage existing technologies to stand out,” says the CEO of IRRAH. He cites emblematic examples, such as the case of the Swedish retailer Lifvs, for example, which chose rural areas as the location for its automated stores, offering more options to communities without access to supermarkets. The chain opened 19 stores in container format that are transported to the operating location and unlocked via an app.
However, local businesses don't need to resort to such bold strategies to captivate their audience and beat the competition in the technological world. According to Baleco, there are accessible tools on the market today that, for example, automate campaigns and customer service, and with a little creativity, can make all the difference and guarantee an unforgettable experience for customers.
“Imagine launching a digital campaign to attract people who don't yet know your store. You can offer exclusive discounts to encourage these people to visit your establishment, creating an opportunity to win them over. For customers who already frequent the store, the campaign can encourage them to subscribe to your online channel to receive news, promotions, and updates, stimulating more frequent purchases. The possibilities for increasing engagement and sales are endless!” he explains.
Baleco explains that the IRRAH Group is present in more than 70 countries, driving the concept of hyperlocal retail. The company has helped businesses automate customer service and connect consumers with companies. Among its innovative solutions are GTP Maker, which uses AI to create virtual assistants; Dispara Aí, which develops campaigns that boost sales; E-vendi, an e-commerce platform optimized for WhatsApp; and KIGI, a strategic ERP that transforms retail management into a fully integrated ecosystem.
“These technologies not only optimize operations, but have also made retail more dynamic and competitive. The integration of innovation and proximity is undoubtedly the key to success in this new scenario,” concludes César Baleco.
