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Latin American Retailers to Benefit From Improved Economy

Latin American Retailers to Benefit From Improved Economy
In a just-released report, analysts at Fitch Ratings are bullish on the sector as macroeconomic conditions stabilize.

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Macroeconomic conditions in Latin America are on the upswing, and Fitch Ratings analysts are optimistic about the region's retail sector. In a recent report, they highlighted stable inflation and declining interest rates as factors that will benefit the industry this year. Additionally, increased competition from online retailers has prompted traditional merchants to focus on enhancing their product offerings and improving the overall shopping experience. The report also noted that retailers in Latin America are pursuing a more balanced strategy between growth and profitability in their digital initiatives. Inventory management is considered crucial for preserving profitability, and international debt markets remain volatile due to global macroeconomic conditions and geopolitical risks. Some of the top retailers in Latin America include FEMSA Comercio, Grupo Comercial, Organization Soriano, and Grupo Coppel in Mexico, as well as Cencosud and Falabella in Chile, and Natura & Co. in Brazil. In Mexico, Walmart de México y Centroamérica, also known as Walmex, is a dominant force in the market, operating over 2,800 stores, 300 Walmart Supercenter units, and 167 Sam’s Club stores.

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