The Brazilian has experienced significant changes in his lifestyle in recent years, including the urban “exod”, which is the exchange of large capitals for smaller cities in search, especially, of quality of life. This movement has reshaped the retail market, creating a growing demand for solutions that are close, agile and accessible. All aligned with the style and expectations of this new audience.
Hyperlocal retail, as this phenomenon was titled, starts from the premise that both consumers and companies look at what is nearby, thinking locally and prioritizing convenience and opportunities, respectively.
Large chains such as the Sugar Loaf Group and Carrefour are already investing in smaller formats closer to the communities, such as the Sugar Loaf Minute and Carrefour Express. Already startups such as Swedish Lifvs, with autonomous stores and available 24 hours, or Brazilian Ame Go, which automates purchases with AI and wi-fi, show how convenience is transforming retail.
“The future of retail will be increasingly decentralized and connected. Stores do not have to be large, but rather agile, convenient and adapted to local needs”, says Cesar Baleco, CEO of IRRAH, a technology group specialized in solutions for the retail sector.
In addition to the large 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 companies recently opened. In September 2024, 349.5 thousand new small businesses were registered, 96% of the total CNPJs created in the period, according to a survey by Sebrae with data from the Federal Revenue. In the accumulated of the year, 3.3 million new companies were opened, with approximately 3.2 million, composed of MEIs, micro and small companies.
According to Baleco, this transformation tends to be even more pronounced. During the pandemic, 72% of Brazilians began to prioritize small businesses, and 80% said they will continue to encourage local establishments, according to Accenture.
“The future of retail is being close, agile and, above all, connected”, he says, noting that technology is no longer just a facilitator to become a strategic differential for those seeking to stand out in this new market format.
And the ways to use this differential are numerous. “We can not forget that the consumer is close, but is also connected, and although more conducive to buying than is nearby, faces an often overwhelming competition in the virtual universe. Given this, it is necessary that local merchants make use of existing technologies today to stand out”, says the CEO of IRRAH. He cites emblematic examples, such as the case of the Swedish retailer Lifvs, for example, who, chose the rural area as the destination of their automated stores, offering more options to communities without access to supermarkets. The network opened 19 in container format are transported to the local operation.
But local businesses do not need to use such bold strategies to captivate their audience and beat the competition in the technological world. According to Baleco, there are tools available today in the middle that, for example, automate campaigns and services, and that, with a little creativity, can make a difference and ensure an unforgettable experience to customers.
“Imagine launch a digital campaign to attract people who do not know your store yet. You can offer exclusive discounts so that these people come to your establishment, creating an opportunity to win them. For customers who already frequent the place, the campaign can encourage them to subscribe to your online channel to receive news, promotions and updates, stimulating more frequent purchases. The possibilities to increase engagement and sales are numerous!”, explains.
Baleco says that the IRRAH Group is present in more than 70 countries, driving the concept of hyperlocal retail. The company has helped businesses automate customer service and connect consumers to companies. Among the innovative solutions are GTP Maker, which uses AI to create virtual assistants; trigger There, 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 also make retail more dynamic and competitive.The integration between innovation and proximity is undoubtedly the key to success in this new” scenario, concludes Cesar Baleco.