StartSeveralCasesSee why Grupo Pão de Açúcar and Carrefour are...

See why Grupo Pão de Açúcar and Carrefour are investing in smaller formats that are closer to customers

The Brazilian has been experiencing significant changes in their lifestyle in recent years, including the "urban exodus," which is the shift from large capitals to smaller cities mainly in search of quality of life. This movement has reshaped the retail market, creating a growing demand for solutions that are close, agile, and accessible. Everything aligned with the style and expectations of this new audience.

Hyperlocal retail, as this phenomenon has been called, is based on the premise that both consumers and companies look at what is nearby, thinking locally and prioritizing convenience and opportunities, respectively.

There are no shortage of examples. Large networks such as Grupo Pão de Açúcar and Carrefour are already investing in smaller formats closer to communities, such as Minuto Pão de Açúcar and Carrefour Express. Already, startups like the Swedish Lifvs, with autonomous stores available 24 hours, or the Brazilian Ame Go, which automates shopping with AI and Wi-Fi, demonstrate how convenience is transforming retail.

“The future of retail will be increasingly decentralized and connected. Stores do not need to be large, but rather agile, convenient and adapted to local needs,” highlights César Baleco, CEO of IRRAH, a technology group specialized in solutions for the retail sector.

In addition to the major networks 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, accounting for 96% of the total CNPJs created during the period, according to a Sebrae survey with data from the Federal Revenue Service. In the accumulated year, 3.3 million new companies were opened, approximately 3.2 million of which are composed of MEIs, micro, and small businesses.

According to Baleco, this transformation is likely to become even more pronounced. During the pandemic, 72% of Brazilians began to prioritize small businesses, and 80% stated that they will continue to support local establishments, according to Accenture.

“The future of retail is being close, agile and, above all, connected,” he says, highlighting 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 although they are more likely to buy from someone close by, they face often overwhelming competition in the virtual universe. Therefore, it is necessary for local merchants to leverage the existing technologies today to stand out," says the CEO of IRRAH. It cites emblematic examples, such as the Swedish retailer Lifvs, for instance, which chose the rural area as the destination for its automated stores, offering more options to communities without access to supermarkets. The network reopened 19 in container format, transported to the operational site, being unlocked via an app.

But 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 available in the market today that, for example, automate campaigns and customer service, and with a bit of creativity, can make a difference and ensure 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 get these people to come to your establishment, creating an opportunity to win them over. For customers who already frequent your store, the campaign can encourage them to subscribe to your online channel to receive news, promotions and updates, encouraging more frequent purchases. The possibilities for increasing engagement and sales are endless!” he explains.

Baleco states that the IRRAH Group is present in more than 70 countries, promoting the concept of hyperlocal retail. The company has been helping businesses automate customer service and connect consumers to companies. Among the 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 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 between innovation and proximity is, without a doubt, the key to success in this new scenario,” concludes César Baleco.

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E-Commerce Update is a leading company in the Brazilian market, specialized in producing and disseminating high-quality content about the e-commerce sector.
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