Brazilians have been experiencing changes in their lifestyle in recent years, including the ‘urban exodus,’ which is the move from large cities to smaller towns, primarily in search of better quality of life. This trend has reshaped the retail market, creating 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 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 autonomous 24-hour stores, or Brazil’s Ame Go, which automates purchases using 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 tailored to local needs,” emphasizes César Baleco, CEO of IRRAH, a technology group specializing in retail solutions.
Beyond the major chains investing in local commerce, hyperlocal retail also aligns with the growth of small businesses in Brazil, which represent the majority of recently opened companies. In September 2024, 349.5 thousand new small businesses were registered—96% of all CNPJs created during the period, according to Sebrae data from the Federal Revenue Service. Year-to-date, 3.3 million new businesses were opened, roughly 3.2 million of which were sole proprietors, micro, or small businesses.
According to Baleco, this transformation is set to become even more pronounced. During the pandemic, 72% of Brazilians began prioritizing small businesses, and 80% stated they would continue supporting local establishments, according to Accenture.
“The future of retail lies in being local, agile, and, above all, connected,” he says, stressing that technology is no longer just an enabler but a strategic differentiator for those looking to stand out in this new market format.
And the ways to leverage this competitive edge are countless. ‘We must not forget that the consumer is nearby but also connected, and while they may be more inclined to shop locally, they also face overwhelming competition online. To stand out, local merchants must utilize today’s available technologies,’ says IRRAH’s CEO. He cites emblematic examples like Swedish retailer Lifvs, which chose rural areas for its automated stores, providing more options to communities without supermarket access. The chain opened 19 stores in container formats, transported to their locations and unlocked via an app.
But local businesses don’t need such bold strategies to win over their audience and compete in the tech-driven world. According to Baleco, there are affordable tools available today—such as those automating campaigns and customer service—that, with a bit of creativity, can make a difference and deliver an unforgettable customer experience.
“Imagine launching a digital campaign to attract people who don’t yet know your store. You could offer exclusive discounts to draw them in, creating an opportunity to win them over. For existing customers, the campaign could encourage them to subscribe to your online channel for updates, promotions, and news, driving more frequent purchases. The possibilities to boost engagement and sales are endless!” he explains.
Baleco notes that IRRAH Group operates in over 70 countries, advancing the hyperlocal retail concept. The company has helped businesses automate service and connect customers to 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 platform; and KIGI, a strategic ERP that transforms 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.
