Retailing in Costa Rica Industry - Consumers seemed to be even more careful in 2011

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Retailing in Costa Rica is finding it hard to fully recover its previous dynamism. Consumers seemed to be even more careful in 2011 than they were in 2010, when most people thought that the effects of economic situation were virtually over. As the economy struggles to recover, consumers remain very cautious about their spending (especially on non-grocery items), with the vast majority of the population choosing to visit several outlets to find the best prices before deciding what and where to buy.
Published: March 2012
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Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Costa Rica with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Retailing industry in Costa Rica, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Costa Rica for free:
Clothing and footwear specialist retailers
Convenience stores
Direct selling
DIY, home improvement and garden centres
Electronics and appliance specialist retailers
Forecourt retailers
Furniture and furnishings stores
Grocery retailers
Health and beauty specialist retailers
Internet retailing
Leisure and personal goods specialist retailers
Mixed retailers
Non-grocery retailers
Non-store retailing

The Retailing in Costa Rica market research report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic number of stores, selling space and values, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:
How big is the grocery/non-grocery/non-store channel in Costa Rica?
Who are the leading retailers in Costa Rica?
How is retailing performing in Costa Rica?
What is the retailing environment like in Costa Rica?
Which channels are winning or losing in the fight for consumers’ money?

Why buy this report?
Gain competitive intelligence about market leaders
Track key industry trends, opportunities and threats
Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Retailing market research database.
Sample Analysis
Local retailers try different strategies to recover lost dynamism
Most companies continue to develop their discounting strategies, announcing promotional prices on high rotation products to attract people. Local retailers are likely to continue making efforts to recover some dynamism, with companies opting to increase their level of promotions, while reducing profit margins, as long as consumers keep visiting their outlets. Players, especially non-grocery retailers, should continue to offer credit facilities to stimulate sales of new products.

Non-grocery retailers record slower value sales growth than grocery retailers
The economic uncertainty in the second half of 2011 was reflected by the slowdown in the consumption of non-essential goods, which negatively impacted the vast majority of non-grocery retailers. Families have been pressured to reduce their spending on non-essential products, although credit options still offer people the opportunity to buy such items. Since credit plans usually involves high interest rates, families remain very cautious about taking on financial commitments; therefore spending is concentrated on groceries. This trend could develop and grow unless unemployment rates start to improve.

Wal-Mart intensifies the competition among chained grocery outlets
The increased level of competition due to Wal-Mart Centroamérica’s launch in the country, and the logistics associated with its “low prices every day” campaign, had a big impact on grocery retailing in Costa Rica in 2011. Chained competitors responded vigorously, spending significantly more on publicity, in the first semester of 2011, to establish marketing positions among consumers.

Uncertainty over the forecast period
The outlook for the local economy is quite conservative due to uncertainty surrounding the performance of the country’s closest commercial partners. This could have a strong effect on tourism activity and the inflow of foreign direct investment. The volatility in the prices of fuel and most basic raw materials, such as grains, makes the country more vulnerable if a new recession strikes the global economy. This would affect retailing in Costa Rica directly.
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