Brazilians have experienced changes in their lifestyle in recent years, including the ‘urban exodus,’ which is the shift from major cities to smaller towns, primarily in pursuit of a better quality of life. This trend has reshaped the retail market, creating demand for solutions that are close, fast, and accessible—all aligned with the style and expectations of this new audience.
Hyperlocal retail, as this phenomenon has been termed, is based on the premise that both consumers and businesses focus on what is nearby, thinking locally and prioritizing convenience and opportunities, respectively.
Examples abound. Major chains like Grupo Pão de Açúcar and Carrefour are already investing in smaller, community-focused formats such as Minuto Pão de Açúcar and Carrefour Express. Meanwhile, startups like Sweden’s Lifvs, with its autonomous 24-hour stores, or Brazil’s Ame Go, which automates purchases with AI and Wi-Fi, showcase how convenience is transforming retail.
“The future of retail will be increasingly decentralized and connected. Stores don’t need to be large—they need to be agile, convenient, and tailored to local needs,” emphasizes César Baleco, CEO of IRRAH, a technology group specializing in retail solutions.
In addition to large chains investing in local commerce, hyperlocal retail aligns 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 all CNPJs created during that period, according to Sebrae’s survey with data from the Federal Revenue Service. Year-to-date, 3.3 million new businesses were opened, with approximately 3.2 million consisting of MEIs, micro, and small enterprises.
According to Baleco, this transformation is only set to intensify. During the pandemic, 72% of Brazilians began prioritizing small businesses, and 80% said they would continue supporting local establishments, according to Accenture.
“The future of retail lies in being close, agile, and above all, connected,” he states, highlighting that technology is no longer just an enabler but a strategic differentiator for those aiming to stand out in this new market format.
The ways to leverage this advantage are countless. “We can’t forget that the consumer is nearby but also connected, and while more inclined to buy locally, they face overwhelming competition online. Therefore, local merchants must use existing technologies to stand out,” says IRRAH’s CEO. He cites emblematic examples, like Swedish retailer Lifvs, which chose rural areas for its automated stores, offering more options to communities without access to supermarkets. The chain opened 19 stores in container format, transported to their locations and unlocked via an app.
However, local businesses don’t need to adopt such bold strategies to attract their audience and outpace competition in the tech-driven world. According to Baleco, accessible tools are available today that, for example, automate campaigns and customer service—and with a bit of creativity, can make a difference and deliver an unforgettable experience to customers.
“Imagine launching a digital campaign to attract people who don’t yet know your store. You can offer exclusive discounts to draw them in, creating an opportunity to win them over. For existing customers, the campaign can encourage them to subscribe to your online channel for news, promotions, and updates, boosting repeat purchases. The possibilities to increase engagement and sales are endless!” he explains.
Baleco notes that IRRAH Group operates in over 70 countries, driving the hyperlocal retail concept. The company has helped businesses automate service and connect consumers with companies. Among its innovative solutions are GTP Maker, which uses AI to create virtual assistants; Dispara Aí, which develops sales-boosting campaigns; E-vendi, a WhatsApp-optimized e-commerce tool; and KIGI, a strategic ERP that turns retail management into a fully integrated ecosystem.
“These technologies not only optimize operations but also make retail more dynamic and competitive. The integration of innovation and proximity is undoubtedly the key to success in this new landscape,” concludes César Baleco.
