Retailing in Peru

RETAILING IN PERU
Euromonitor International
May 2014
RETAILING IN PERU
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LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Retail Sales Driven by Good Economic Performance............................................................... 1
Department Stores and Internet Retailing Are the Most Dynamic Categories .......................... 1
Retailers Focus on Opening Smaller Formats .......................................................................... 1
Discounters Continue To See Poor Performance ..................................................................... 1
Optimistic Outlook for Retailing ................................................................................................ 1
Key Trends and Developments .................................................................................................... 2
Good Economic Performance Drives Retailing Sales ............................................................... 2
Internet Retailing Continues To See Fast Development ........................................................... 2
Expansion To Provinces Pursued by Leading Retailers ........................................................... 3
Discounters on the Decline in Peru........................................................................................... 4
Market Indicators .......................................................................................................................... 4
Table 1
Employment in Retailing 2008-2013............................................................. 4
Market Data .................................................................................................................................. 5

Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Table 25
Table 26
Table 27
Table 28
Table 29
Sales in Retailing by Channel: Value 2008-2013 ......................................... 5

Sales in Retailing by Channel: % Value Growth 2008-2013......................... 5
Sales in Store-Based Retailing by Channel: Value 2008-2013 .................... 5
Store-Based Retailing Outlets by Channel: Units 2008-2013 ....................... 5
Sales in Store-Based Retailing by Channel: % Value Growth 20082013 ............................................................................................................. 6
Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013 ........ 6
Sales in Non-store Retailing by Channel: Value 2008-2013......................... 6
Sales in Non-store Retailing by Channel: % Value Growth 2008-2013 ........ 6
Sales in Retailing by Grocery vs Non-Grocery: 2008-2013 .......................... 7
Non-Grocery Retailers: Value Sales, Outlets and Selling Space 20082013 ............................................................................................................. 7
Sales in Non-Grocery Retailers by Channel: Value 2008-2013 .................... 7
Non-Grocery Retailers Outlets by Channel: Units 2008-2013 ...................... 7
Sales in Non-Grocery Retailers by Channel: % Value Growth 20082013 ............................................................................................................. 8
Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013 ....... 8
Retailing Company Shares: % Value 2009-2013 ......................................... 9
Retailing Brand Shares: % Value 2010-2013 ............................................... 9
Store-Based Retailing Company Shares: % Value 2009-2013 .................. 10
Store-Based Retailing Brand Shares: % Value 2010-2013 ........................ 10
Store-Based Retailing Brand Shares: Outlets 2010-2013 .......................... 11
Non-store Retailing Company Shares: % Value 2009-2013....................... 12
Non-store Retailing Brand Shares: % Value 2010-2013 ............................ 12
Non-Grocery Retailers Company Shares: % Value 2009-2013.................. 13
Non-Grocery Retailers Brand Shares: % Value 2010-2013 ....................... 13
Non-Grocery Retailers Brand Shares: Outlets 2010-2013 ......................... 14
Non-Grocery Retailers Brand Shares: Selling Space 2010-2013 ............... 14
Forecast Sales in Retailing by Channel: Value 2013-2018 ........................ 15
Forecast Sales in Retailing by Channel: % Value Growth 2013-2018 ........ 15
Forecast Sales in Store-Based Retailing by Channel: Value 20132018 ........................................................................................................... 16
RETAILING IN PERU
Table 30
Table 31
Table 32
Table 33
Table 34
Table 35
Table 36
Table 37
Table 38
Table 39
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Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018 ...... 16

Forecast Sales in Store-Based Retailing by Channel: % Value Growth
2013-2018 .................................................................................................. 16
Forecast Store-Based Retailing Outlets by Channel: % Unit Growth
2013-2018 .................................................................................................. 16
Forecast Sales in Non-store Retailing by Channel: Value 2013-2018 ........ 17
Forecast Sales in Non-store Retailing by Channel: % Value Growth
2013-2018 .................................................................................................. 17
Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space 2013-2018 ....................................................................................... 17
Forecast Sales in Non-Grocery Retailers by Channel: Value 20132018 ........................................................................................................... 17
Forecast Non-Grocery Retailers Outlets by Channel: Units 2013-2018 ..... 18
Forecast Sales in Non-Grocery Retailers by Channel: % Value
Growth 2013-2018 ..................................................................................... 18
Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth
2013-2018 .................................................................................................. 19
Appendix .................................................................................................................................... 19
Operating Environment ........................................................................................................... 19
Summary 1
Table 40
Standard Opening Hours by Channel Type 2013....................................... 20

Number of Shopping Centres/Malls 2010-2013 ......................................... 22
Cash and Carry....................................................................................................................... 22

Table 41
Number of Outlets in Cash and Carry by National Brand Owner:

2010-2013 .................................................................................................. 23
Definitions................................................................................................................................... 23
Sources ...................................................................................................................................... 25
Summary 2
Research Sources ...................................................................................... 25
II
RETAILING IN PERU
RETAILING IN PERU
EXECUTIVE SUMMARY
Retail Sales Driven by Good Economic Performance
In 2013, favourable economic conditions in Peru boosted retailing sales. The higher
disposable incomes of Peruvian consumers, coupled with increasing access to credit cards,
allowed them to increase their expenditure both on basic and non-essential items. In turn,
retailers continued to invest in expanding in Lima and medium-sized cities in provinces, as they
benefitted from a larger consumer base.
Department Stores and Internet Retailing Are the Most Dynamic

Categories
Department store retailers were favoured by the aggressive expansion of the leading brands
Saga Falabella and Ripley in districts in Lima and cities in the provinces, where there was
untapped demand. In addition, sales through department stores were boosted by frequent
discounts, promotions tied to the use of store credit cards and the entrance of the new brand
Paris. In turn, internet retailing benefitted from an increasing number of broadband internet
subscribers, rising access to credit cards, and an expanding range of products and discounts
offered by the leading players.
Retailers Focus on Opening Smaller Formats

Retailers, both in grocery and non-grocery channels, focused their expansion on the opening
of smaller formats for several reasons. Firstly, the price per sq m continued to rise in Lima, and
therefore, retailers opted to purchase or rent smaller areas to continue expanding at a fast pace.
Secondly, retailers that had already achieved a good degree of penetration in Lima, choose
smaller formats to expand in the provinces, where the potential consumer base remained lower
than in Perus capital. This trend is expected to continue over the forecast period, when it is
expected that emphasis will be placed on expanding to mid-sized markets.
Discounters Continue To See Poor Performance

Discounters registered a significant decline in retail value sales for second consecutive year in
2013. The main reason behind this performance was that Peruvian consumers who focused on
obtaining low prices were accustomed to shopping at open markets located near their
households, which offered lower prices than discounters. Furthermore, consumers who enjoyed
higher purchasing power took into account other variables besides an attractive price in deciding
where to shop, such as range of products, quality and good customer service. As a result, they
traded up to modern grocery retailers like supermarkets and hypermarkets.
Optimistic Outlook for Retailing

Retailing is expected to develop at a strong rate over the forecast period. This will be driven
by the good performance of the Peruvian economy, increasing access to credit cards and the
low penetration of several channels, including modern grocery retailers, department stores, and
home improvement and gardening stores, at the end of the review period. This will encourage
retailers to focus on opening outlets in the outskirts of Lima and second tier cities in provinces.
Furthermore, retailers will look to attract consumers through improving their loyalty schemes.
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RETAILING IN PERU
KEY TRENDS AND DEVELOPMENTS

Good Economic Performance Drives Retailing Sales
During the first semester of 2013, Peru continued to post healthy real GDP growth, in line with
the performance observed the previous year. In addition, the Peruvian currency, Nuevo Sol
continued to moderately appreciate relative to the dollar and the euro, while the unemployment
rate decreased moderately, all of which translated into a positive economic scenario in 2013.
Furthermore, the inflation rate was expected to remain low and within the target limits of
between 1 and 3% set by the Central Bank of Peru. As a result, Peruvian consumers continued
to increase their expenditure on non-essential products, leisure and durable goods.
Outlook
According to the Central Bank of Peru, the Peruvian economy was expected to see real GDP
growth of 6% in 2013 and achieve similar performance over the 2014-2018 period. The good
performance of the economy will boost consumption amongst middle and low-middle income
consumers, who are expected to increase their purchases within modern grocery retailers and
chained non-grocery retailers, such as department stores, attracted by their wider variety of
products, credit options, convenience, attractively-designed stores and safe locations. In
addition, the inflation rate is expected to remain low, which will mean that even consumers that
do not benefit from rising disposable income levels will not experience a significant drop in their
purchasing power.
Given the good outlook for the Peruvian economy over the forecast period, retailers already
present in the country are expected to invest in expanding their presence in cities outside of
Lima, as well as strengthening their customer loyalty schemes. In turn, new international
companies are expected to enter Peru, as they diversify their investments to offset the losses in
markets with poor performance, in favour of emerging markets such as Peru.
With regard to internet sales, it is expected that leading retailers will progressively engage in
sales through this channel, to appeal to technology-savvy consumers, as well as those looking
for further practicality and time-savings when shopping. Moreover, given that internet retailing
remained a relatively small channel in Peru at the end of the review period, it will be possible for
both store-based and online sales to coexist without having a negative impact on each other
over the forecast period.
In contrast, it is likely that competition between grocery and non-grocery retailers will
increase, as the former expand their portfolio of non-grocery items. Being able to purchase the
most needed items in one store is likely to prove attractive to consumers looking for
convenience. As a result, both non-grocery and grocery retailers are likely to focus on achieving
differentiation through improving their customer service, frequently updating the promotions and
discounts available with store cards, and carrying a mix of products across different price
ranges.
Internet Retailing Continues To See Fast Development

Internet retailing remained a relatively small channel in Peru at the end of the review period,
with sales excluding tax reaching PEN455 million in 2013, equating to a 1% share of total
retailing sales. Nonetheless, the channel continued to develop at a fast pace, posting retail
value sales growth of 19%. This outstanding performance was partially due to the channel
expanding from a small base, but also due to the increasing purchasing power of Peruvian
consumers, improved access to credit cards, strengthened security when purchasing online,
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RETAILING IN PERU
and the rising number of broadband internet subscribers in the country. According to the latest
Euromonitor International estimates, the number of broadband internet subscribers registered
growth of 11% growth in 2013, to reach 1.5 million people. Moreover, the busier lifestyles of
Peruvians also impacted positively on the development of this channel, as consumers
increasingly sought convenient and time-saving ways to shop.
Outlook
Internet retailing is expected to continue growing at rapid rate over the forecast period, with
constant value sales predicted to see a CAGR of 13%, significantly above the CAGR of 6%
expected of retailing as a whole. Increasing disposable income levels will allow consumers to
increase their purchases of desktops, laptops, tablets and mobile phones with internet
capabilities, which will favour online sales. Furthermore, more retailers with good reputations are
expected to begin to offer online sales. What is more, it is expected that events run by the Lima
Chamber of Commerce, such as Cyber Peru and Cyber Monday, whereby several well-known
companies aggressively discount their products and services on specific days, will continue to
raise awareness and encourage more Peruvian consumers to shop online.
With a wider range of players participating in internet retailing, it is expected that internet
retailers, as well as brick and mortar retailers offering online sales, will not only need to maintain
attractive discounts and promotions but also look to achieve differentiation from the competition
by providing quick delivery of products, expanding their coverage within medium-sized cities in
Peru and delivering excellent customer service. Nevertheless, it is worth noting that the
development of internet retailing will not represent a threat to the growth of store-based retailers
in Peru over the forecast period, due to two main reasons. Firstly, most of the population in Peru
is accustomed to shopping at physical stores rather than online. Secondly, even if a remarkable
number of Peruvians became accustomed to shopping online, they are likely to show an
ongoing preference for shopping for groceries in physical stores, as they place high value on
product freshness and quality.
Expansion To Provinces Pursued by Leading Retailers

Over the review period, the trend towards urbanisation became more prevalent in Peru. For
instance, according to Euromonitor Internationals estimates, the urban population in Peru grew
8% between 2009 and 2013 to reach 24 million, which equates to 78% of the country's total
population. The increasing importance of cities within provinces and the construction of
shopping centres in these cities offered an opportunity for retailers to increase their penetration
in the country. As a result, retailers who entered or increased their presence in large and
medium-sized cities in Peru, benefitted from overall increased penetration and consolidated
their brands on a nationwide level. What is more, the challenge of finding a suitable location and
the rising price per sq m in the capital, coupled with strong competition in Lima, encouraged
some brands to enter the country through medium-sized cities. For example, Paris, an
international department store brand, opened its first outlet in Peru in the city of Arequipa in May
2013.
Outlook
It is expected that over the forecast period, the largest retailers operating in Peru, such as
Falabella Per SAA, Tiendas por Departamento Ripley SAA, Cencosud Per SA and Eckerd
Per SA, will continue opening outlets in cities outside of Lima, where there is significant
unsatisfied demand, the price per sq m is cheaper and competition is less fierce. In addition, as
retailers adapt to the specifics of other cities, it is likely that they will embrace smaller formats
compared to those utilised in Lima. Although improving penetration in Lima will continue to be a
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RETAILING IN PERU
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key goal, due to the significant percentage of the country's total population living there, it is
expected that the pace of expansion in Lima will be slower than in provinces.
Discounters on the Decline in Peru

Over the review period, discounters in Peru registered a current value CAGR of -21%. While
the format enjoyed moderate success in Peru in the past, proving particularly popular amongst
low and low-middle income consumers, it saw decreasing popularity over the review period.
There were several factors behind the poor performance seen. Firstly, Peruvians looking for
attractive prices and fresh products continued the strong tradition of shopping in open markets,
which were conveniently located close to their homes and carried a wide range of products. In
contrast, discounters had very limited coverage in the country, while their prices were higher
than market stalls. Secondly, as Peruvian consumers benefited from higher disposable income
levels and gained access to credit cards, they gave priority to product quality and variety over
price. This resulted in many consumers showing a preference for supermarkets and
hypermarkets, where they could choose from a wider range of products, as well as had access
to superior quality products. Furthermore, as consumers became more demanding, they were
increasingly attracted to supermarkets and hypermarkets, as the appealing and more modern
design of outlets in these channels offered a better shopping experience, as well as superior
customer service. These trends were noticed by Supermercados Peruanos SA, which remained
the only retailer operating discounters in Peru, under the Mass and Economax brands. As a
result, in 2013, the retailer opted to adapt some of its discounter outlets into smaller-sized
supermarkets under the Plaza Vea Express brand, a format that saw a rapid increase in
awareness amongst Peruvian consumers over the review period.
Outlook
Discounters is expected to see a further significant decline in constant value sales over the
forecast period, with a CAGR of -5% predicted. The increasing purchasing power of Peruvian
consumers will see more of them opt to shop within modern grocery retailers, such as
supermarkets and hypermarkets, which offer a wider range of products and provide more
convenience through carrying a significant portfolio of non-grocery items, thereby satisfying
consumers looking for a one-stop shopping experience. It is unlikely that other players will prove
interested in entering discounters over the forecast period, given the poor performance
expected. Furthermore, it is likely that Supermercados Peruanos SA will gradually adapt more of
its discounter outlets to its new supermarket format, Plaza Vea Express.
MARKET INDICATORS
Table 1
Employment in Retailing 2008-2013
Total employment ('000

people)
Employment in retailing
('000 people)
Employment in retailing
(%) (% of total
employment)
Source:
2008
2009
2010
2011
2012
2013
13,888.8
14,153.0
14,495.6
14,717.2
15,000.1
15,111.2
2,183.5
2,233.2
2,303.5
2,367.9
2,429.2
2,490.6
15.7
15.8
15.9
16.1
16.2
16.5
Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews
RETAILING IN PERU
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MARKET DATA
Table 2
Sales in Retailing by Channel: Value 2008-2013
PEN million, retail value rsp excl sales tax
Store-based Retailing
Non-Store Retailing
Retailing
Source:
Table 3
2008
2009
2010
2011
2012
2013
53,752.4
2,464.2
56,216.6
56,575.5
2,684.1
59,259.6
61,338.0
2,899.2
64,237.2
68,351.0
3,242.1
71,593.1
75,392.5
3,598.0
78,990.5
81,921.8
3,984.7
85,906.5
trade interviews, trade sources
Sales in Retailing by Channel: % Value Growth 2008-2013
% current value growth, retail value rsp excl sales tax
Non-Store Retailing
Retailing
Source:
Table 4
2012/13
2008-13 CAGR
2008/13 Total
8.7
10.7
8.8
8.8
10.1
8.9
52.4
61.7
52.8
Sales in Store-Based Retailing by Channel: Value 2008-2013
Grocery Retailers
Non-Grocery Retailers
Luxury Retail
Source:
Table 5
2008
2009
2010
2011
2012
2013
33,513.5
20,238.9
53,752.4
35,085.8
21,489.7
56,575.5
37,430.3
23,907.6
61,338.0
40,404.8
27,946.2
8.3
68,351.0
42,836.7
32,555.8
8.2
75,392.5
45,744.1
36,177.7
8.0
81,921.8
Store-Based Retailing Outlets by Channel: Units 2008-2013
outlets
Grocery Retailers
Luxury Retail
Source:
2008
2009
2010
2011
2012
2013
367,410
46,345
413,755
369,849
46,018
415,867
370,042
46,408
416,450
370,528
46,595
1
417,123
370,719
46,919
1
417,638
370,976
47,485
1
418,461
RETAILING IN PERU
Table 6
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Sales in Store-Based Retailing by Channel: % Value Growth 2008-2013
Grocery Retailers
Luxury Retail
Source:
2012/13
2008-13 CAGR
2008/13 Total
6.8
11.1
-1.6
8.7
6.4
12.3
8.8
36.5
78.8
52.4
Table 7
Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013
% unit growth
Grocery Retailers
Luxury Retail
Source:
Table 8
2012/13
2008-13 CAGR
2008/13 Total
0.1
1.2
0.0
0.2
0.2
0.5
0.2
1.0
2.5
1.1
Sales in Non-store Retailing by Channel: Value 2008-2013
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
Note:
Table 9
2008
2009
2010
2011
2012
2013
2,194.7
104.2
165.2
2,464.2
2,375.1
110.7
198.3
2,684.1
2,544.7
116.0
238.6
2,899.2
2,799.9
121.5
320.7
3,242.1
3,087.5
127.6
382.9
3,598.0
3,395.6
134.2
454.9
3,984.7
Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Sales in Non-store Retailing by Channel: % Value Growth 2008-2013
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
2012/13
2008-13 CAGR
2008/13 Total
10.0
5.2
18.8
10.7
9.1
5.2
22.5
10.1
54.7
28.8
175.3
61.7
RETAILING IN PERU
Note:
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Table 10
Sales in Retailing by Grocery vs Non-Grocery: 2008-2013
% retail value rsp excl sales tax
Grocery
Non-Grocery
Total
Source:
Table 11
Table 12
2009
2010
2011
2012
2013
45.5
54.5
100.0
45.5
54.5
100.0
45.2
54.8
100.0
44.9
55.1
100.0
44.6
55.4
100.0
44.2
55.8
100.0
Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2008-2013
Value sales PEN million

Outlets
Selling Space '000 sq m
Source:
2008
2008
2009
2010
2011
2012
2013
20,238.9
46,345.0
2,578.8
21,489.7
46,018.0
2,633.3
23,907.6
46,408.0
2,810.3
27,946.2
46,595.0
2,955.4
32,555.8
46,919.0
3,167.8
36,177.7
47,485.0
3,425.8
Sales in Non-Grocery Retailers by Channel: Value 2008-2013
Apparel and Footwear

Specialist Retailers
Electronics and
Appliance Specialist
Retailers
Health and Beauty
Home and Garden
Leisure and Personal
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
Table 13
2008
2009
2010
2011
2012
2013
1,888.3
1,743.4
1,890.3
2,030.9
2,216.1
2,410.1
2,698.9
2,634.9
3,103.8
3,605.2
4,024.4
4,486.7
4,161.1
4,326.7
4,595.2
4,888.3
5,227.0
5,600.8
7,675.6
8,574.5
9,506.6
11,674.5
14,714.0
16,233.7
694.4
734.4
797.5
871.1
933.3
999.5
2,871.8
248.7
3,209.6
266.1
3,734.1
280.3
4,582.3
294.0
5,131.2
309.8
6,119.7
327.2
20,238.9
21,489.7
23,907.6
27,946.2
32,555.8
36,177.7
Non-Grocery Retailers Outlets by Channel: Units 2008-2013
outlets
2008
2009
2010
2011
2012
2013
RETAILING IN PERU
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Electronics and
Retailers
Health and Beauty
Home and Garden
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
13,737
13,598
13,817
13,997
14,210
14,508
1,508
1,570
1,692
1,820
1,885
1,926
18,724
18,377
18,239
17,959
17,825
17,871
7,487
7,530
7,589
7,634
7,689
7,729
2,168
2,180
2,235
2,295
2,351
2,407
32
2,689
36
2,727
46
2,790
50
2,840
62
2,897
80
2,964
46,345
46,018
46,408
46,595
46,919
47,485
Table 14
Sales in Non-Grocery Retailers by Channel: % Value Growth 2008-2013
Apparel and Footwear Specialist

Retailers
Electronics and Appliance Specialist
Retailers
Health and Beauty Specialist Retailers
Home and Garden Specialist Retailers
Leisure and Personal Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery Retailers
Source:
2012/13
2008-13 CAGR
2008/13 Total
8.8
5.0
27.6
11.5
10.7
66.2
7.2
10.3
7.1
6.1
16.2
7.6
34.6
111.5
43.9
19.3
5.6
11.1
16.3
5.6
12.3
113.1
31.5
78.8
Table 15
Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013
% unit growth

Retailers
Retailers
Retailers
Mixed Retailers
Source:
2012/13
2008-13 CAGR
2008/13 Total
2.1
1.1
5.6
2.2
5.0
27.7
0.3
0.5
2.4
-0.9
0.6
2.1
-4.6
3.2
11.0
29.0
2.3
1.2
20.1
2.0
0.5
150.0
10.2
2.5
RETAILING IN PERU
Table 16
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Retailing Company Shares: % Value 2009-2013

Company
Falabella Per SAA
Cencosud Per SA
Supermercados Peruanos SA
Tiendas por
Departamento Ripley SAA
Maestro Per SA
Eckerd Per SA
E Wong SA
Importaciones Hiraoka SA
Cetco SA
Total Artefactos SA
Tiendas Efe SA
Corporacin Cermica SA
Tiendas Peruanas SA
Unique SA
Botica Torres de
Limatambo SAC
Productos Avon SA
Elektra del Per SA
Farmacias Peruanas SA
Topy Top SA
Albis SA
Hipermercados Metro SA
Maestro Home Center SA
Others
Total
Source:
2009
2010
2011
2012
2013
5.6
3.5
2.1
6.2
3.7
2.1
7.3
3.9
2.4
7.5
3.8
2.5
7.9
4.6
3.9
2.6
1.4
1.2
0.8
1.1
0.7
0.4
0.7
0.5
0.7
0.5
1.5
1.2
1.0
1.1
0.8
0.6
0.8
0.6
0.7
0.6
1.4
1.4
1.2
1.0
1.1
0.8
0.6
0.7
0.7
0.7
0.6
1.5
1.4
1.2
1.1
1.0
0.8
0.6
0.7
0.7
0.7
0.5
1.6
1.5
1.2
1.1
1.0
0.8
0.8
0.7
0.7
0.7
0.5
0.5
0.4
0.6
0.4
0.4
3.9
1.1
73.6
100.0
0.5
0.4
0.6
0.4
0.4
4.0
1.2
71.8
100.0
0.5
0.5
0.5
0.4
0.4
4.2
69.6
100.0
0.5
0.5
0.5
0.5
0.4
4.2
69.1
100.0
0.5
0.5
0.5
0.5
0.4
67.8
100.0
Table 17
Retailing Brand Shares: % Value 2010-2013

Brand
Company
Metro
Saga Falabella
Plaza Vea
Tottus
Ripley
Sodimac
Maestro Per
Inkafarma
Wong
Hiraoka
La Curacao
Tiendas Efe
Celima
Oechsle
Unique
Esika
Cencosud Per SA
Falabella Per SAA
Falabella Per SAA
Tiendas por
Falabella Per SAA
Maestro Per SA
Eckerd Per SA
E Wong SA
Total Artefactos SA
Tiendas Efe SA
Tiendas Peruanas SA
Unique SA
Cetco SA
2010
2011
2012
2013
2.9
3.0
2.3
2.1
3.1
3.2
2.7
2.4
3.1
3.1
2.9
2.5
4.2
3.2
3.2
3.0
2.6
1.0
1.5
1.2
1.0
0.7
0.6
0.8
0.6
0.7
0.8
1.5
1.4
1.4
1.2
1.0
0.8
0.6
0.7
0.7
0.7
0.7
1.6
1.5
1.4
1.2
1.1
0.8
0.6
0.7
0.7
0.7
0.7
1.7
1.6
1.5
1.2
1.1
0.8
0.8
0.7
0.7
0.7
0.7
RETAILING IN PERU
Passport
Boticas BTL
Avon
Elektra
Boticas Fasa
Metro
Maestro Home Center
Others
Total
Source:
Botica Torres de
Limatambo SAC
Productos Avon SA
Elektra del Per SA
0.6
0.5
0.5
0.5
0.4
0.6
4.0
1.2
73.8
100.0
0.5
0.5
0.5
4.2
71.6
100.0
0.5
0.5
0.5
4.2
71.1
100.0
0.5
0.5
0.5
70.2
100.0
Table 18
Store-Based Retailing Company Shares: % Value 2009-2013

Company
Falabella Per SAA
Cencosud Per SA
Tiendas por
Maestro Per SA
Eckerd Per SA
E Wong SA
Total Artefactos SA
Tiendas Efe SA
Tiendas Peruanas SA
Botica Torres de
Limatambo SAC
Elektra del Per SA
Topy Top SA
Albis SA
Cassinelli SA
Homecenters Peruanos SA
Empresas Comerciales SA
Others
Total
Source:
0.6
2009
2010
2011
2012
2013
5.9
3.6
2.2
6.5
3.9
2.2
7.6
4.1
2.5
7.9
4.0
2.6
8.2
4.9
4.1
2.7
1.5
1.2
0.9
0.7
0.4
0.7
0.5
0.6
1.5
1.3
1.0
0.9
0.6
0.8
0.6
0.6
1.5
1.5
1.2
1.1
0.8
0.7
0.8
0.7
0.6
1.6
1.5
1.2
1.1
0.8
0.7
0.8
0.7
0.6
1.7
1.6
1.2
1.2
0.9
0.8
0.8
0.7
0.6
0.4
0.6
0.4
0.4
0.4
0.3
4.1
1.2
74.0
100.0
0.4
0.6
0.4
0.4
0.4
0.3
4.1
1.3
72.2
100.0
0.5
0.6
0.5
0.4
0.4
0.0
0.3
4.4
69.9
100.0
0.5
0.5
0.5
0.4
0.4
0.3
0.3
4.4
69.0
100.0
0.5
0.5
0.5
0.4
0.4
0.3
0.3
67.6
100.0
Table 19
Store-Based Retailing Brand Shares: % Value 2010-2013

Brand
Company
Metro
Plaza Vea
Saga Falabella
Tottus
Ripley
Cencosud Per SA
Falabella Per SAA
Falabella Per SAA
Tiendas por
2010
2011
2012
2013
3.1
3.0
2.4
2.2
3.3
3.2
2.8
2.5
3.3
3.2
3.0
2.6
4.4
3.3
3.3
3.1
2.7
10
RETAILING IN PERU
Passport
Sodimac
Maestro Per
Inkafarma
Wong
Hiraoka
La Curacao
Tiendas Efe
Celima
Oechsle
Boticas BTL
Elektra
Boticas Fasa
Topi Top
Boticas Arcangel
Paris
Metro
Maestro Home Center
Others
Total
Source:
1.1
1.5
1.3
1.0
0.7
0.6
0.8
0.6
0.6
1.5
1.5
1.5
1.2
1.1
0.8
0.7
0.8
0.7
0.6
1.7
1.6
1.5
1.2
1.1
0.8
0.7
0.8
0.7
0.6
1.8
1.7
1.6
1.2
1.2
0.9
0.8
0.8
0.7
0.6
0.4
0.6
0.4
0.4
4.1
1.3
73.7
100.0
0.5
0.6
0.5
0.4
4.4
71.4
100.0
0.5
0.5
0.5
0.4
4.4
70.8
100.0
0.5
0.5
0.5
0.4
0.4
69.5
100.0
Table 20
Store-Based Retailing Brand Shares: Outlets 2010-2013
sites/outlets
Brand
Inkafarma
Boticas Arcangel
Boticas Fasa
Boticas y Salud
Boticas BTL
Mifarma
Bata
La Curacao
Tiendas Efe
Metro
Carsa
Topi Top
Plaza Vea
Elektra
Tottus
Maestro Per
Saga Falabella
Ripley
adidas
Tai Loy
Metro
Others
Total
Source:
Falabella Per SAA

Maestro Per SA
Eckerd Per SA
E Wong SA
Total Artefactos SA
Tiendas Efe SA
Tiendas Peruanas SA
Botica Torres de
Limatambo SAC
Elektra del Per SA
Topy Top SA
Albis SA
Cencosud Per SA
Company
Eckerd Per SA
Albis SA
Boticas y Salud SAC
Botica Torres de
Limatambo SAC
Mifarma SAC
Total Artefactos SA
Tiendas Efe SA
Cencosud Per SA
Peruana de Artefactos
para el Hogar SAC
Topy Top SA
Elektra del Per SA
Falabella Per SAA
Maestro Per SA
Falabella Per SAA
Tiendas por
adidas Chile Ltda
Sucursal del Per
Tai Loy SA
2010
2011
2012
2013
403
271
183
166
145
433
282
193
174
166
488
288
202
184
169
546
342
227
195
172
115
127
82
58
58
139
130
87
66
66
150
134
91
80
70
160
136
94
88
72
62
23
40
28
24
17
15
30
41
28
27
18
17
15
45
49
33
33
23
19
20
57
51
38
36
27
24
23
15
19
20
21
15
47
414,618
416,450
17
56
415,119
417,123
19
67
415,454
417,638
21
416,069
418,461
11
RETAILING IN PERU
Table 21
Passport
Non-store Retailing Company Shares: % Value 2009-2013

Company
Cetco SA
Unique SA
Productos Avon SA
Natura Cosmticos
Sociedade Annima
Omnilife Per SAC
Herbalife Per SRL
Quality Products SA
Amazon.com Inc
Dupree Venta Directa SA
Leo Andes SA
Dyclass de Peru SRL
Apple Inc
Falabella Per SAA
Oriflame Per SA
Tienshi Tayhe SAC
Grupo Americano de
Comercio SAC
eBay Inc
Tiendas por
Total Artefactos SA
SwissJust Latinoamerica
SA Sucursal Peru
Others
Total
Source:
Note:
2009
2010
2011
2012
2013
23.5
14.4
11.4
6.1
24.6
14.8
11.7
6.2
23.5
14.9
11.2
6.4
22.4
14.8
11.5
6.4
21.5
14.8
11.5
6.6
4.1
2.8
3.7
1.6
0.9
1.1
0.8
0.9
1.1
0.9
0.4
4.1
3.6
3.6
2.1
1.2
1.2
1.1
1.0
1.1
1.0
0.4
3.9
3.6
3.4
2.6
2.1
1.2
1.2
1.1
0.2
1.0
0.6
0.4
3.7
3.6
3.2
2.7
2.3
1.2
1.2
1.1
0.4
0.8
0.6
0.5
3.5
3.4
3.0
2.8
2.4
1.2
1.2
1.2
0.8
0.8
0.6
0.5
0.2
-
0.2
-
0.3
0.1
0.4
0.2
0.4
0.4
0.2
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
25.3
100.0
21.6
100.0
21.7
100.0
22.2
100.0
22.6
100.0
Table 22
Non-store Retailing Brand Shares: % Value 2010-2013

Brand
Company
2010
2011
2012
2013
Unique
Esika
Avon
Natura
14.8
17.0
11.7
6.2
14.9
15.5
11.2
6.4
14.8
14.9
11.5
6.4
14.8
14.4
11.5
6.6
6.5
4.1
3.6
3.6
2.1
1.2
1.1
1.2
1.1
1.0
1.1
6.5
3.9
3.6
3.4
2.6
2.1
1.5
1.2
1.2
1.1
0.2
1.0
5.7
3.7
3.6
3.2
2.7
2.3
1.7
1.2
1.2
1.1
0.4
0.8
5.4
3.5
3.4
3.0
2.8
2.4
1.7
1.2
1.2
1.2
0.8
0.8
Cyzone
Omnilife
Herbalife
Quality Products
Amazon
Dupree
L'Bel
Leonisa
Dyclass
Apple
Saga Falabella
Oriflame
Unique SA
Cetco SA
Productos Avon SA
Natura Cosmticos
Sociedade Annima
Cetco SA
Omnilife Per SAC
Herbalife Per SRL
Quality Products SA
Amazon.com Inc
Dupree Venta Directa SA
Cetco SA
Leo Andes SA
Dyclass de Peru SRL
Apple Inc
Falabella Per SAA
Oriflame Per SA
12
RETAILING IN PERU
Passport
Tiens
Rosatel
Tienshi Tayhe SAC

Grupo Americano de
Comercio SAC
eBay Inc
Tiendas por
eBay
Ripley
Others
Total
Source:
Note:
0.6
0.4
0.6
0.5
0.6
0.5
0.2
-
0.3
0.1
0.4
0.2
0.4
0.4
22.1
100.0
22.3
100.0
22.8
100.0
23.2
100.0
Table 23
Non-Grocery Retailers Company Shares: % Value 2009-2013

Company
Falabella Per SAA
Tiendas por
Maestro Per SA
Eckerd Per SA
Total Artefactos SA
Tiendas Efe SA
Tiendas Peruanas SA
Botica Torres de
Limatambo SAC
Elektra del Per SA
Topy Top SA
Albis SA
Cencosud Per SA
Cassinelli SA
Tai Loy SA
Boticas y Salud SAC
Others
Total
Source:
1.0
0.4
2009
2010
2011
2012
2013
10.4
5.7
10.5
5.7
11.7
6.1
11.3
6.0
11.5
6.2
4.0
2.3
1.6
1.2
1.8
1.3
1.5
3.9
2.6
1.9
1.5
2.0
1.5
1.5
3.6
3.7
2.7
2.0
1.6
1.9
1.7
1.4
3.8
3.5
2.6
1.9
1.6
1.8
1.7
1.3
3.9
3.5
2.7
1.9
1.8
1.8
1.7
1.3
1.2
1.5
1.1
1.1
1.0
0.8
0.8
1.0
3.1
58.7
100.0
1.1
1.5
1.1
1.1
1.0
0.8
0.8
0.9
3.3
57.1
100.0
1.2
1.4
1.1
1.0
1.0
0.1
0.7
0.8
0.8
55.4
100.0
1.2
1.3
1.1
1.0
0.9
0.7
0.7
0.8
0.7
55.9
100.0
1.2
1.2
1.2
1.0
1.0
0.9
0.8
0.8
0.7
0.7
54.2
100.0
Table 24
Non-Grocery Retailers Brand Shares: % Value 2010-2013

Brand
Company
Saga Falabella
Ripley
Sodimac
Maestro Per
Inkafarma
Falabella Per SAA

Tiendas por
Falabella Per SAA
Maestro Per SA
Eckerd Per SA
2010
2011
2012
2013
7.7
5.7
7.9
6.1
7.4
6.0
7.4
6.2
2.8
3.9
3.8
3.6
3.7
3.9
3.8
3.5
4.0
3.9
3.5
13
RETAILING IN PERU
Passport
Hiraoka
La Curacao
Tiendas Efe
Celima
Oechsle
Boticas BTL
Elektra
Boticas Fasa
Topi Top
Boticas Arcangel
Paris
Cassinelli
Promart
Bata
Tai Loy
Maestro Home Center
Others
Total
Source:
2.7
2.0
1.6
1.9
1.7
1.4
2.6
1.9
1.6
1.8
1.7
1.3
2.7
1.9
1.8
1.8
1.7
1.3
1.1
1.5
1.1
1.1
1.0
0.8
0.8
3.3
58.0
100.0
1.2
1.4
1.1
1.0
1.0
0.1
0.7
0.8
56.2
100.0
1.2
1.3
1.1
1.0
0.9
0.7
0.7
0.8
56.7
100.0
1.2
1.2
1.2
1.0
1.0
0.9
0.8
0.8
0.7
55.0
100.0
Non-Grocery Retailers Brand Shares: Outlets 2010-2013
sites/outlets
Brand
Company
Inkafarma
Boticas Arcangel
Boticas Fasa
Boticas y Salud
Boticas BTL
Eckerd Per SA
Albis SA
Boticas y Salud SAC
Botica Torres de
Limatambo SAC
Mifarma SAC
Total Artefactos SA
Opticas GMO Per SAC
Tiendas Efe SA
Rash Per SAC
para el Hogar SAC
Comercial Mont SAC
Topy Top SA
Elektra del Per SA
Maestro Per SA
Falabella Per SAA
Tiendas por
adidas Chile Ltda
Sucursal del Per
Tai Loy SA
Mifarma
Bata
La Curacao
Opticas GMO
Tiendas Efe
RadioShack
Carsa
Platanitos
Topi Top
Elektra
Maestro Per
Saga Falabella
Ripley
adidas
Tai Loy
Others
Total
Table 26
2.6
1.9
1.5
2.0
1.5
1.5
Table 25
Source:
Total Artefactos SA
Tiendas Efe SA
Tiendas Peruanas SA
Botica Torres de
Limatambo SAC
Elektra del Per SA
Topy Top SA
Albis SA
Cencosud Per SA
Cassinelli SA
Tai Loy SA
2010
2011
2012
2013
403
271
183
166
145
433
282
193
174
166
488
288
202
184
169
546
342
227
195
172
115
127
82
71
58
42
58
139
130
87
77
66
58
66
150
134
91
83
80
67
70
160
136
94
90
88
75
62
35
23
28
17
15
43
30
28
18
17
15
54
45
33
23
19
20
60
57
38
27
24
23
15
19
20
21
15
44,539
46,408
17
44,537
46,595
19
44,680
46,919
21
45,027
47,485
Non-Grocery Retailers Brand Shares: Selling Space 2010-2013
14
RETAILING IN PERU
Passport
surface area '000 sq m

Brand
Maestro Per
Saga Falabella
Ripley
Sodimac
Oechsle
Topi Top
Estilos
La Curacao
Promart
Paris
Inkafarma
Elektra
Cassinelli
Tiendas Efe
Casa & Ideas
Bata
Carsa
Boticas Arcangel
Boticas Fasa
Boticas y Salud
Maestro Home Center
Others
Total
Source:
Table 27
Company
2010
2011
2012
2013
Maestro Per SA
Falabella Per SAA
Tiendas por
Falabella Per SAA
Tiendas Peruanas SA
Topy Top SA
Estilos SRL
Total Artefactos SA
Cencosud Per SA
Eckerd Per SA
Elektra del Per SA
Cassinelli SA
Tiendas Efe SA
DH Empresas Per SA
para el Hogar SAC
Albis SA
Boticas y Salud SAC
111.1
126.8
117.4
117.5
126.8
150.2
128.1
144.1
176.9
166.8
165.6
123.8
27.7
34.5
58.5
57.4
17.7
15.1
20.8
11.0
14.2
13.7
12.1
131.6
42.6
45.1
72.8
61.8
14.6
18.6
15.1
25.3
13.2
15.7
14.2
14.3
136.9
68.2
67.9
79.8
65.7
37.0
21.2
18.5
23.0
17.1
17.1
15.8
15.6
149.0
92.1
86.4
79.8
68.2
51.9
43.2
23.8
21.7
20.6
19.2
17.1
16.6
13.5
10.3
6.8
4.6
91.1
2,053.0
2,810.3
10.9
7.2
4.9
2,085.8
2,955.4
11.2
7.6
5.2
2,137.6
3,167.8
13.4
8.6
5.6
2,185.7
3,425.8
Forecast Sales in Retailing by Channel: Value 2013-2018
Non-Store Retailing
Retailing
Source:
Note:
Table 28
2013
2014
2015
2016
2017
2018
81,921.8
3,984.7
85,906.5
86,506.5
4,224.9
90,731.4
91,141.1
4,481.6
95,622.7
96,053.8
4,757.9
100,811.7
101,260.3
5,045.6
106,305.8
106,821.5
5,347.9
112,169.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast value data in constant terms
Forecast Sales in Retailing by Channel: % Value Growth 2013-2018
% constant value growth, retail value rsp excl sales tax
Non-Store Retailing
Retailing
Source:
2013-18 CAGR
2013/18 TOTAL
5.5
6.1
5.5
30.4
34.2
30.6
trade sources
15
RETAILING IN PERU
Table 29
Passport
Forecast Sales in Store-Based Retailing by Channel: Value 2013-2018
Grocery Retailers
Luxury Retail
Source:
Note:
2013
2014
2015
2016
2017
2018
45,744.1
36,177.7
8.0
81,921.8
47,767.4
38,739.1
86,506.5
49,746.3
41,394.8
91,141.1
51,838.3
44,215.5
96,053.8
54,021.2
47,239.0
101,260.3
56,353.9
50,467.6
106,821.5
trade sources
Table 30
Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018
outlets
Grocery Retailers
Luxury Retail
Source:
2013
2014
2015
2016
2017
2018
370,976
47,485
1
418,461
370,612
48,044
418,656
370,849
48,717
419,566
370,529
49,338
419,867
370,684
50,026
420,710
370,539
50,720
421,259
trade sources
Table 31
Forecast Sales in Store-Based Retailing by Channel: % Value Growth 20132018

2013-18 CAGR
2013/18 TOTAL
4.3
6.9
5.5
23.2
39.5
30.4
Grocery Retailers
Luxury Retail
Source:
trade sources
Table 32
Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 20132018
% unit growth
Grocery Retailers
Luxury Retail
Source:
2017/18
2013-18 CAGR
2013/18 Total
0.0
1.4
0.1
0.0
1.3
0.1
-0.1
6.8
0.7
trade sources
16
RETAILING IN PERU
Table 33
Passport
Forecast Sales in Non-store Retailing by Channel: Value 2013-2018
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
Note 1:
Note 2:
Table 34
2013
2014
2015
2016
2017
2018
3,395.6
134.2
454.9
3,984.7
3,565.4
138.6
520.9
4,224.9
3,746.1
142.6
592.8
4,481.6
3,939.1
147.2
671.6
4,757.9
4,138.4
151.6
755.6
5,045.6
4,345.3
156.3
846.2
5,347.9
trade sources
further details refer to definitions
Forecast Sales in Non-store Retailing by Channel: % Value Growth 20132018

2013-18 CAGR
2013/18 TOTAL
5.1
3.1
13.2
6.1
28.0
16.5
86.0
34.2
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-Store Retailing
Source:
Note:
Table 35
trade sources
further details refer to definitions
Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space

2013-2018
Value sales PEN million

Outlets
Selling Space '000 sq m
Source:
Note:
Table 36
2013
2014
2015
2016
2017
2018
36,177.7
47,485.0
3,425.8
38,739.1
48,044.0
3,614.4
41,394.8
48,717.0
3,804.3
44,215.5
49,338.0
3,970.7
47,239.0
50,026.0
4,139.0
50,467.6
50,720.0
4,323.5
Forecast Sales in Non-Grocery Retailers by Channel: Value 2013-2018

2013
2014
2015
2016
2017
2018
2,410.1
2,542.6
2,692.6
2,843.4
3,008.3
3,179.8
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RETAILING IN PERU
Passport
Electronics and
Retailers
Health and Beauty
Home and Garden
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
Note:
Table 37
4,486.7
4,800.8
5,156.0
5,522.1
5,925.2
6,351.8
5,600.8
5,866.6
6,134.5
6,434.2
6,748.2
7,080.8
16,233.7
17,309.6
18,469.5
19,723.9
21,076.6
22,544.9
999.5
1,045.7
1,095.6
1,146.0
1,199.5
1,254.3
6,119.7
327.2
6,836.1
337.7
7,496.7
349.8
8,184.5
361.3
8,907.2
374.0
9,669.4
386.7
36,177.7
38,739.1
41,394.8
44,215.5
47,239.0
50,467.6
trade sources
Forecast Non-Grocery Retailers Outlets by Channel: Units 2013-2018
outlets

Electronics and
Retailers
Health and Beauty
Home and Garden
Goods Specialist
Retailers
Mixed Retailers
Other Non-Grocery
Retailers
Source:
Table 38
2013
2014
2015
2016
2017
2018
14,508
14,827
15,213
15,563
15,952
16,334
1,926
1,984
2,051
2,115
2,185
2,255
17,871
17,866
17,918
17,945
18,003
18,061
7,729
7,776
7,814
7,859
7,895
7,938
2,407
2,463
2,521
2,577
2,638
2,699
80
2,964
93
3,035
104
3,096
112
3,167
119
3,234
128
3,305
47,485
48,044
48,717
49,338
50,026
50,720
trade sources
Forecast Sales in Non-Grocery Retailers by Channel: % Value Growth 20132018
Apparel and Footwear Specialist Retailers

Electronics and Appliance Specialist Retailers
Leisure and Personal Goods Specialist Retailers
Mixed Retailers
2013-18 CAGR
2013/18 TOTAL
5.7
7.2
4.8
6.8
4.6
9.6
3.4
6.9
31.9
41.6
26.4
38.9
25.5
58.0
18.2
39.5
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RETAILING IN PERU
Source:
Passport
trade sources
Table 39
Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth 20132018
% unit growth

Retailers
Retailers
Retailers
Mixed Retailers
Source:
2017/18
2013-18 CAGR
2013/18 Total
2.4
2.4
12.6
3.2
3.2
17.1
0.3
0.5
2.3
0.2
0.5
2.3
1.1
2.7
12.1
7.6
2.2
1.4
9.9
2.2
1.3
60.0
11.5
6.8
trade sources
APPENDIX
Operating Environment
Informal retailing
There are no official estimates for the market size of informal retailing in Peru. Despite this,
some international organisations have tried to gauge its size. For instance, in 2008, the
International Monetary Fund published the report Measuring the Informal Economy in Latin
America and the Caribbean, wherein the size of the informal economy in Peru was estimated
to account for 38% of GDP. Meanwhile, the International Labor Organization estimated that
Peru had 5.1 million people employed in the informal category in 2009.
According to a World Bank report published in 2012, informal employment decreased by 8%
in Peru between 2000 and 2010, thanks to the good performance of the economy and
improved access to education and better salaries. Despite this, many small entrepreneurs do
not see the benefits of engaging in formal retailing and opt for informal commercialisation to
maximize their profits. Another factor that favours informal retailing is its wide geographic
coverage of the country, constituting a convenient channel for a large consumer base.
Some product categories are more affected than others by informal retailing. In Peru, the
products most sold through informal retailing are music CDs, DVDs, books, clothes, electronic
appliances and toys. This determines that the categories most affected are media product
stores, traditional toys and games stores, apparel specialist retailers and electronics and
appliances specialist retailers.
Informal retailing is present throughout the country. In urban areas, informal retailing takes
place in area with high pedestrian traffic and also within commercial malls, such as Polvos
Azules mall and Wilson mall, which specialise in selling counterfeit DVDs and computer
software, respectively. These two malls are located in the centre of Lima. In addition, El
Hueco mall, which is also located in the centre of Lima, mostly sells adulterated medicines
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RETAILING IN PERU
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and pirate DVDs. In rural areas, informal retailing proliferates thanks to the low penetration of
modern formal channels and poor law enforcement. It is worth noting that informal retailing
also takes advantage of impulse purchases, as sellers offer their products on public
transportation, and to people in their cars stopped at traffic lights.
Informal retailing attracts a wide range of consumers in Peru. Typically, it targets middle and
low income consumers who live in urban and rural areas of the country. Given the fact that
informal retailers face lower costs, they are able to offer their products at significantly lower
prices, attracting a wide consumer base. Moreover, upper income segments are not immune
to the appeal of informal retailing, especially for products such as DVDs, where the offering
through legal channels is restricted. Furthermore, most of the population do not give
consideration to the negative impact of purchasing counterfeit products on tax revenue, as
well as the revenues of formal retailing companies, as they believe that some of their products
are excessively priced.
The Peruvian government periodically carries out operations in which counterfeit and
adulterated products are confiscated and fines are levied on the commercial galleries where
these products are sold. However, these measures do not constitute an effective deterrent, as
informal sellers typically resume their activities within days. Moreover, the government cannot
close malls such as El Hueco and Polvos Azules, as their owners legally obtained their
working licenses and they argue that they are not responsible for the products sold by the
small businessmen who rent outlets and that only a portion of them actually commercialise
counterfeit products. Despite this, the government focuses its efforts on reducing the costs
and time involved in obtaining a retailing license, even though many engaged in the informal
market do not perceive the tangible advantages of formalising their businesses.
Opening hours
Summary 1
Channel
Standard Opening Hours by Channel Type 2013

24 hour
MondaySaturday
Sunday
present?
Friday
Public
holidays
Supermarket
s
No
08:00-22:00
08:00-22:00
08:00-22:00
Open (*)
Hypermarket
s
No
08:00-22:00
08:00-22:00
08:00-22:00
Open (*)
Chained
Forecourt
Retailers
Yes
Open
Parapharmac
ies
No
07:00-23:00
07:00-23:00
07:00-22:00
Open
Department
Stores
No
11:00-21:30
11:00-22:00
11:00-22:00
Open (*)
Home
Improvement
and
Gardening
Stores
No
7:30-22:00
08:00-22:00
08:00-22:00
Open (*)
Source:
Note:
Euromonitor International from companies' websites

(*) Except on January 1st, May 1st and Christmas.
Opening hours vary depending on the store type and the location of the business. In general
terms, modern grocery retailers are open from 8am to 10pm. Traditional grocer retailers are
20
RETAILING IN PERU
usually open from 7am to 8pm. Non-grocery retailers tend to open later, generally at 10 am,
and close between 7 and 10 pm. In rural areas, businesses open early in the morning, usually
at 6am, and tend to close for one to two hours at lunch time. Businesses that operate inside
shopping centres synchronise their hours of operation to those of the mall, usually from 9am
to 10 pm during weekdays and up to midnight during the weekend, to take advantage of the
higher amount of visitors on these days.
There are no laws that restrict the number of opening days per year, in Peru. The only legal
requirement is that stores respect regulations regarding employees shifts. Usually, retailers
operate year round, with a few holidays that they close, such as New Year's Day, May 1st and
Christmas. Nevertheless, some businesses are open even during these holidays, but with
irregular opening and closing hours. Drugstores/parapharmacies are usually open year round,
due to the type of products they sell.
Forecourt retailers is the main format offering 24-hour retailing in Peru. In addition, some
drugstores/parapharmacies attend customers during late hours with the store partially closed
and the option of performing the sale through a small window. It is worth mentioning that the
supermarkets Vivanda and Metro offer 24-hour retailing at their stores located in Miraflores, a
tourist-oriented district in Lima. These outlets benefit from a significant flow of customers at
late hours, basically comprised of tourists, young people and those living nearby. Despite this,
there is not a significant opportunity for most retailers to increase their sales though 24-hour
retailing and, as a result, most businesses are not interested in implementing this practice.
Given the fact that Sunday is one of the days with the heaviest customer traffic, most large
retailers, such as modern grocer retailers, electronics and appliance specialist retailers,
apparel retailers and home and garden specialist retailers, seek to profit from higher sales
during the weekend. Regarding traditional retailers, while other grocery retailers and other
non-grocery retailers are open during Sundays, as this day is a central day for family
purchases, approximately half of the bodegas (independent small grocers) choose to work to
benefit from impulse purchases.
Businesses located in rural areas generally have slightly different opening hours than outlets
located in urban areas. Usually they close between one and two hours during lunch time and
most of these stores remain closed on Sundays.
Retail landscape
Traditional retailers have wide geographic coverage in Peru, both in urban and rural areas.
These retailers appeal to a large consumer base, with their affordable prices and small pack
sizes, which allow people with limited budgets to make purchases on a frequent basis.
Despite this, malls saw strong penetration in Peru between the turn of the millennium and the
end of the review period. According to the Association of Shopping and Entertainment
Centres of Peru (ACCEP), there were only eight shopping centres in Peru in 2000, while the
total number of shopping centres stood at 45 in 2011. Twenty six of these are located in Lima,
in high, medium and even low income districts. The rest, are located in the wealthiest
provinces of the country, such as Piura, Chiclayo, Trujillo, Cajamarca, Ica and Arequipa.
ACCEP estimates that sales of shopping malls amounted to US$ 5.3 billion in 2012, while it
was estimated that they would reach US$6.1 billion in 2013.
According to ACCEP, between 2013 and 2015, investors will prioritise projects located in
Perus provinces over Lima.
Both local and international players have created important chains of shopping centres both in
Lima and the provinces of the country. Leading players are able to attract the most important
domestic and international retailers, which become anchor tenants in their premises. An
important local player is Grupo Interbank, which had 11 shopping centres in 2012. Regarding
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RETAILING IN PERU
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international players, one of the key players is Grupo Falabella from Chile, which operated 8
malls in the country at the end of 2012.
Lima is the most popular shopping destination in the country, with 34 shopping centres
located in districts with different socioeconomic characteristics in 2012. Most popular
domestic and international retailers are present in Lima, catering to different audiences.
Within provinces, Arequipa and Piura are the leading shopping destinations, with 8 shopping
centres between them in 2012.
Several luxury retailers are located in upper income districts of Lima, such as La Molina,
Surco, Miraflores and San Isidro. Within provinces, luxury retailers are located in the
wealthiest cities, such as Arequipa, Ica and Piura. While some luxury retailers have streetfacing outlets in high traffic areas, others are located within shopping centres. Discount
retailers are located in low income districts in Lima, such as La Victoria, San Juan de
Lurigancho, Brea and Bellavista.
The development of shopping malls has not had a significant effect on traditional retail
destinations. Although shopping malls attract large crowds, many families tend to visit these
outlets attracted by their wide array of entertainment and eating options and to window shop
rather than to make a planned purchase. The largest part of the population still shop at
channels such as independent small grocers (bodegas) and other grocery retailers (market
stalls), in search of fresh products and smaller pack sizes, which make products affordable to
consumers with budgetary restrictions. Furthermore, traditional retailers benefit from their
wide geographical coverage, which significantly surpasses that of modern retailers.
Table 40
Number of Shopping Centres/Malls 2010-2013
Shopping centres/malls
% growth
Source:
2010
2011
2012
2013
36
13
45
25
56
24
69
23
Euromonitor International from ACCEP and trade press.
Cash and Carry

Cash and carry remains a relatively new retailing format in Peru. Mayorsa SA is the longest
established player in cash and carry in Peru, with more than 10 years operating in the
country. Despite this, the company has not achieved significant penetration, due to a number
of reasons. Firstly, in order to benefit from the highest volume discounts, clients need to pay a
membership fee, which deters several consumers from purchasing at these outlets. Secondly,
the stores are modest looking, have poor illumination and carry a limited range of products.
Furthermore, most small businesses purchase their products from leading packaged food
companies, as they have strong distribution networks, or purchase them in wholesalers
market stalls like Fruit Market and La Parada Market, both of which are located in the La
Victoria district in Lima, or obtain their products from different small wholesalers.
Cash and carry has increased its presence in Peru, since the entrance of the multinational
Makro in 2009. Currently, the company operates 11 stores, seven of which are located in
Lima, with the remaining four located in the provinces.
Cash and carry outlets are positioned as wholesalers in Peru, but there has not been a strong
effort to explain the concept to small business and individual consumers.
The cash and carry channel remains underdeveloped in Peru, with only two international
companies present namely Mayorsa operated by the Chilean Grupo SMU and Makro, which
22
RETAILING IN PERU
Passport
is of Dutch origin. The main threat to the channel achieving further grow is the tradition of
small businesses buying their products through independent wholesalers or at market stalls,
as they do not perceive significant advantages in dealing with cash and carry outlets.
Most of the clients of Mayorsa SA are small businesses, such as independent small grocers,
bakeries and restaurants. Individual consumers do not have a significant interest in Mayorsa
SA, as the discounts available without membership are not significantly higher than those
available through modern grocery retailers. In addition, individual consumers do not find
Mayorsas outlets attractive, as they have not invested in providing attractive outlets with wide
spaces and adequate lighting inside.
Regarding Makro, the only requirement to be a client of the company is to be a small business
and register without charge to receive a membership card. It is worth mentioning that Makro is
only interested in providing products to small businesses, given the fact that every its sells
products in high volumes. For example, the smallest pack sizes for potatoes and oranges are
10kg and 15kg, respectively, while the smallest available pack size for toilet paper is a 48-unit
pack.
Since international Makro entered Peru, it is believed that it has achieved good results, as it
has progressively expand its number of outlets in Lima, as well as opened its first outlet in the
province of Arequipa in 2011. According to the trade press, Makro plans to invest US$350
million between 2013 and 2015, to continue expanding its presence in lower income districts
in Lima and through the wealthiest cities in the provinces, to reach 15 stores by the end of
2015.
Furthermore, it is believed that Makro will strengthen its expenditure on communicating with
clients. For example, the company holds face-to-face meetings with their clients to learn about
their needs, requirements and how their business is developing. In addition, the company
started to accept debit and credit cards during the first half of 2013, to offer further practicality
and security to their clients. Furthermore, the company will strengthen the presence of its
private label products within its stores, to target clients with budgetary restrictions that
nonetheless want access good quality products.
Table 41
Number of Outlets in Cash and Carry by National Brand Owner: 2010-2013
Outlets
Company (NBO)
Brand(s)
2010
2011
2012
2013
Makro Peru SAC

Mayorsa SA
Makro
Mayorsa
5
10
7
11
9
11
11
11
Source:
Euromonitor International from company websites and trade press
DEFINITIONS
This report analyses the market for Retailing in Peru.
For the purposes of the study, the market has been defined as follows:
Store-based retailing:
Grocery retailers
Modern grocery retailers
Convenience stores
Discounters
Forecourt retailers: chained forecourt retailers; independent forecourt retailers
Hypermarkets
23
RETAILING IN PERU
Supermarkets
Traditional grocery retailers
Independent small grocery retailers
Food/drink/tobacco specialist retailers
Other grocery retailers
Non-grocery retailers
Apparel and footwear specialist retailers
Electronics and appliance specialist retailers
Health and beauty specialist retailers
Chemists/pharmacies
Drugstores/parapharmacies
Beauty specialist retailers
Other healthcare specialist retailers
Home and garden specialist retailers
Furniture and homewares stores
Home improvement and gardening stores
Leisure and personal goods specialist retailers
Jewellery and watch specialist retailers
Media product stores
Pet shops and superstores
Sports goods stores
Stationers/office supply stores
Traditional toys and games stores
Other leisure and personal goods specialist retailers
Mixed retailers
Department stores
Variety stores
Mass merchandisers
Warehouse clubs
Other non-grocery retailers
Non-store retailing:
Vending
Homeshopping
internet retailing
Direct selling
Other terminology:
GBO refers to global brand owner, which is the ultimate owner of a brand.
NBO refers to national brand owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate
company. Share tables at both GBO and at NBO level are provided in the report. Reference
to shares in the report analysis is at NBO level.
Bodegas: Local grocery stores or corner shops in Peru. In 2013, it is estimated that there are
approximately 161,000 bodegas in total, typically with at least one outlet for each residential
block located in urban areas of the country. Concentration is highest in the more densely
populated areas of the capital Lima, namely the North, South and East districts. Bodegas are
independent, typically small and well-assorted family businesses, where it is possible to find
products ranging from artisanal bread and fresh food to beverages and cosmetic and toiletry
products. In all cities and every town in Per, a bodega can be found within a few blocks of
Passport
24
RETAILING IN PERU
Passport
wherever a person is located, so these retail outlets have an extremely wide geographic
market penetration. Furthermore, they are popular among, and adapt themselves to, all
socioeconomic categories. There is no single, specific classification for a bodega, as they can
be very different and distinct from one another, coming in a range of sizes and serving a
range of purposes from larger, grocery-based outlets to much smaller candy and drink
outlets to hardware stores. For the purposes of classification under Euromonitor International
distribution channels in this report, bodega sales are included under independent small
grocers.
SOURCES
Summary 2
Research Sources
Official Sources
Ministerio de Energia y Minas

Ministerio del Trabajo
SMV
Trade Press
Avance Econmico
Correo
Diario Expreso
Diario La Repblica
El Comercio
Revista America Economia
Source:
25

Retailing in Peru

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LIST OF CONTENTS AND TABLES

Employment in Retailing 2008-2013............................................................. 4

Market Data .................................................................................................................................. 5

Sales in Retailing by Channel: Value 2008-2013 ......................................... 5

Forecast Store-Based Retailing Outlets by Channel: Units 2013-2018 ...... 16

Standard Opening Hours by Channel Type 2013....................................... 20

Cash and Carry....................................................................................................................... 22

Number of Outlets in Cash and Carry by National Brand Owner:

Research Sources ...................................................................................... 25

Department Stores and Internet Retailing Are the Most Dynamic

Retailers Focus on Opening Smaller Formats

Discounters Continue To See Poor Performance

Optimistic Outlook for Retailing

KEY TRENDS AND DEVELOPMENTS

Internet Retailing Continues To See Fast Development

Expansion To Provinces Pursued by Leading Retailers

Discounters on the Decline in Peru

Employment in Retailing 2008-2013

Total employment ('000

Sales in Retailing by Channel: Value 2008-2013

PEN million, retail value rsp excl sales tax

Sales in Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Sales in Store-Based Retailing by Channel: Value 2008-2013

PEN million, retail value rsp excl sales tax

Store-Based Retailing Outlets by Channel: Units 2008-2013

Sales in Store-Based Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Store-Based Retailing Outlets by Channel: % Unit Growth 2008-2013

Sales in Non-store Retailing by Channel: Value 2008-2013

PEN million, retail value rsp excl sales tax

Sales in Non-store Retailing by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Sales in Retailing by Grocery vs Non-Grocery: 2008-2013

% retail value rsp excl sales tax

Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2008-2013

Value sales PEN million

Sales in Non-Grocery Retailers by Channel: Value 2008-2013

PEN million, retail value rsp excl sales tax

Apparel and Footwear

Non-Grocery Retailers Outlets by Channel: Units 2008-2013

Apparel and Footwear

Sales in Non-Grocery Retailers by Channel: % Value Growth 2008-2013

% current value growth, retail value rsp excl sales tax

Apparel and Footwear Specialist

Non-Grocery Retailers Outlets by Channel: % Unit Growth 2008-2013

Apparel and Footwear Specialist

Retailing Company Shares: % Value 2009-2013

% retail value rsp excl sales tax

Retailing Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax

Store-Based Retailing Company Shares: % Value 2009-2013

% retail value rsp excl sales tax

Store-Based Retailing Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax

Store-Based Retailing Brand Shares: Outlets 2010-2013

Falabella Per SAA

Non-store Retailing Company Shares: % Value 2009-2013

% retail value rsp excl sales tax

Non-store Retailing Brand Shares: % Value 2010-2013

% retail value rsp excl sales tax

Tienshi Tayhe SAC

Non-Grocery Retailers Company Shares: % Value 2009-2013