Value first
Value-for-money channels gain ground among Latin American shoppers
With historical predominance of the traditional channel, retail in Latin America has been modernizing, now offering a broader and more diverse landscape. This is the result of network expansion, a rise in the number of points of sale, and, above all, consumers’ growing openness to trying new formats.
This shift is fueling value-for-money channels, which combine competitive prices with a clear value proposition. When comparing the data with 2023, discount stores already account for 11% of the total regional spend, while cash-and-carry formats represent 13%.
However, the situation varies across countries. Colombia stands out as a benchmark in the discount-store model, with 100% penetration and a high shopping frequency – on average, one visit per household every six days. In these establishments, consumption goes beyond the basics: shoppers bought an average of 57 different categories in the past year. This contrasts sharply with Ecuador and Mexico, where the channel is still maturing and the average number of categories purchased was 21 and 17, respectively.
The consolidation of the discount channel in Colombia has also helped break certain myths associated with this format. Although private-label products – a central strategy in this model – still represent 64% of the value transacted, they have been gradually giving ground to commercial brands. Moreover, premium options are starting to gain relevance. In 2025, they grew 1.6 times faster than private-label brands over the previous two years, representing 9% of the channel’s total value.
In Brazil, by contrast, the spotlight is on the expansion of cash-and-carry stores, a format that leads the region in penetration: nine out of ten households shop there over the course of a year. In 2025, the channel reached 88% penetration, accounting for 21% of total consumer spend, with an 8% increase in frequency – equivalent to one visit every 22 days.
Even though its predominant role remains stock-up missions – where the shopper buys, on average, 35 different categories – cash-and-carry has been gaining ground in smaller shopping missions, expanding its role within the intentional shopper’s channel mix. Furthermore, the presence of premium products has been growing, showing that the format is evolving its assortment to serve new missions and audiences. This indicates a maturing channel that now delivers more than volume: it also offers variety, quality and convenience.
It is important to note that the growth of value-for-money channels is not necessarily linked to a crisis context, but rather to the rational and strategic stance of the intentional shopper. This consumer seeks to maximize the value of each purchase. In this sense, the ability to find higher-value products in discount stores or cash-and-carry formats reinforces this behavior – allowing consumers to balance price and quality intelligently. What is happening in Colombia and Brazil anticipates a possible path for other markets in the region: as these channels mature, they cease to be merely low-price alternatives and start to take part in territories of innovation, perceived quality, and genuine added value.
