Few sectors have evolved as rapidly as food retail in Brazil. The combination of inflationary pressure, the recovery of purchasing power, and technological advancements has transformed not only the consumer profile but also companies’ strategies. The impact is visible in formats such as cash-and-carry stores, convenience stores, and digital marketplaces, which now shape food shopping in the country.
According to McKinsey’s State of Grocery 2024 study, the share of cash-and-carry stores in the sector’s revenue jumped from 27% to 46% in six years. Meanwhile, hypermarkets have lost ground, representing only 11% of the current market.
Andrea Eboli, a business strategist with over 25 years of experience, founder and CEO of a corporate solutions workshop EDR, highlights the impact of these changes. ‘Retail is constantly adapting. Consumption segmentation is a response to emerging needs: saving on essentials and investing in what brings convenience or pleasure,’ she explains.
Expansion of cash-and-carry stores and their new audience
Cash-and-carry stores have gained prominence by combining affordable prices with a shopping experience focused on savings. Today, they are also present in urban areas, attracting middle- and upper-class consumers. Regional chains have also migrated to this format, further expanding their market presence.
According to Andrea Eboli, the model’s longevity goes beyond prices. ‘Cash-and-carry stores have managed to break the stigma of being exclusive for bulk purchases. Many consumers use them for replenishment, due to the perceived cost-benefit in everyday products,’ she analyzes.
In its latest study, released at the end of 2024, McKinsey points out that loyalty is the next challenge. To sustain growth, major chains are investing in rewards programs, logistical improvements, and product variety.
Regional chains and gourmetization
Regional chains also show strength, with an average annual growth of 20% among the top 20 smaller retailers. By investing in personalization, these groups have managed to cater to specific niches, balancing popular and premium products.
‘Today, consumers seek complete experiences and varied inventories. Regional chains have understood the importance of alliances with local suppliers to offer freshness and exclusivity, which fosters customer loyalty and brings a sense of community, of supporting local commerce,’ Eboli highlights.
One example is the growing demand for gourmet stores, focusing on fresh foods and premium categories. These spaces have attracted more sophisticated customers, strengthening this segment’s share, which already represents 30% of the supermarket market.
Convenience as a competitive edge
Another highlight is the boom in convenience stores, which added nearly 1,000 new units in 2024, especially in metropolitan regions. Besides being close to consumers, they stand out for their omnichannel model, integrating in-store and digital shopping.
With fast-paced routines, convenience has become a priority. If this reality was already present, it became even more tangible post-pandemic, with consumers now accustomed to receiving an ever-growing range of products at home. ‘Small purchases solve situations like grabbing a quick snack near work or buying a missing ingredient through the neighborhood market’s app,’ comments Andrea Eboli.
For companies, this underscores the importance of understanding consumers’ small gaps and investing in technological integrations and geolocation. ‘These behaviors show that consumers value time and practicality, paving the way for innovations in logistics and targeted offers. This is an important insight for managers seeking to stand out in the market,’ she adds.
The entry of stores into marketplaces and delivery apps strengthens this trend. Supermarket chains, for example, offer quick pickup or delivery in minutes, meeting daily urgencies. This fusion of physical and digital stores is creating experiences that reduce consumer time spent without sacrificing variety and quality.
Channel integration and the future of the sector
Food e-commerce still has a small share but is growing rapidly. In 2024, over seven million households shopped online in the sector. Chains investing in omnichannel strategies, such as personalized search and delivery tools, increase their chances of leading the market.
Andrea Eboli summarizes the direction of retail. ‘There was a time when food consumption was limited to in-store shopping. The winning strategy is integrating convenience, savings, and experience. Increasingly, consumers value access to different channels, whether in-store or via mobile. Those who invest in understanding these preferences will be prepared for the future,’ she concludes.
