Brazilians have experienced significant changes in their lifestyle in recent years, among them the ‘urban exodus,’ which is the shift from major capitals to smaller cities, 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 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, demonstrate 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.
Beyond 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, 349,500 new small businesses were registered—96% of all CNPJs created during that period, according to a Sebrae 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 likely 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 states, emphasizing that technology is no longer just an enabler but a strategic differentiator for those seeking to stand out in this new market format.
And there are countless ways to leverage this advantage. “We cannot forget that the consumer is nearby but also connected, and while more inclined to buy locally, they face often overwhelming competition in the virtual world. Therefore, local merchants must utilize existing technologies to stand out,” says the CEO of IRRAH. He cites emblematic examples, such as Swedish retailer Lifvs, which chose rural areas for its automated stores, offering more options to communities without access to supermarkets. The chain opened 19 container-based stores, transported to their operating locations and unlocked via an app.
However, local businesses don’t need to adopt such bold strategies to captivate their audience and outperform competition in the tech-driven world. According to Baleco, there are accessible tools 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 could offer exclusive discounts to draw them to your establishment, creating an opportunity to win them over. For existing customers, the campaign could encourage them to subscribe to your online channel for news, promotions, and updates, 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 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 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.
