Shopping app’s reach and greater presence of supermarkets in the online environment are the main indicators
In the next five years, the Brazilian retail e-commerce should triple its size, and the reasons for that will be the larger presence of the chains in the online environment as well as the growing use of shopping apps. Currently, the online sales share in the Brazilian commerce is small if compared to other countries, about 5%, against 30% in China, 18% in the United Kingdom and 11% in the U.S.
However, according to Carlos Coutinho, partner of consulting and auditing of PwC Brasil, in the last four years the e-commerce share in retail more than doubled its size. Eduardo Terra, president of the Brazilian Retail and Consumption Society, on the other hand, bets that the e-commerce share will double its size in the next years.
According to Mr. Terra, in the supermarket segment, along with drugstores and building material stores, expectations are that large companies in their respective sectors are enhancing their online sales operations, so the e-commerce will reach new standard in the expected period.
Moreover, shopping apps are leveraging e-commerce growth in Brazil since iFood, one of the main players, intends to get to the end the first semester of 2020 with one thousand supermarkets registered in the delivery service, which encompasses about 200 stores today.
In contrast, the e-commerce company, B2W, has recently acquired the Supermercado Now e-commerce platform. In spite of the positive estimate for the online retail, the main challenges are still the logistics and the deliveries’ safety.