Big box retailing

 

Specialized products, personalized service, special promotions, and fast turn-arounds on merchandise, are ways in which Central American retailers may be able to compete with big-box stores.

It’s not an easy tax, since many of the region’s consumers like the low prices of big-box brands, which in recent years have performed well.

Walmart Mexico-Central America (only Spanish), which reported a 6% year-over-year increase in second-quarter sales, says it will invest $265 million this year in opening and renovating Central American stores.

The company, a subsidiary of Wal-Mart Stores, Inc., is projected to have sales this year of close to $15 billion.

Walmart Mexico-Central America has close to 3,000 stores in Mexico and throughout the isthmus, except Panama and Belize.

With six outlets in Costa Rica, four in Panama and two each in El Salvador, Nicaragua and Honduras, PriceSmart is small compared to Walmart.

But strong cost controls and a focus on bulk sales have helped PriceSmart grow consistently since entering the region in 1996.

For its part, EPA (only Spanish) expects to open its fifth Costa Rican store early next year, following the inaguration of its first two Guatemalan stores before the end of 2015.

A Venezuela-based chain offering home-improvement and construction products, EPA has two stores in El Salvador.

The company opened its first Central American store in Costa Rica in 2005.