A CHANGING LANDSCAPE
Technology, healthy lifestyle and changing consumers’ confidence are just some of the reasons that Latin America is undergoing a change in its retail landscape. Here, RLI delves into some of the recently opened schemes and those major projects that are soon to open to find out more about what is propelling this market forward.
In a report by Euromonitor International, it was highlighted that shifting values and access to the internet have led to increasing competition with today’s consumers shopping across multiple platforms. While 92 per cent of retail sales in Latin America continue to take place in physical stores, alternative shopping models – such as e-commerce and subscription services – are gaining ground. Thus, retailers must be prepared to engage with consumers anytime and anywhere.
A more holistic approach to wellness is being adopted, encompassing not only aesthetics but also mental well-being and physical health. Over 95 per cent of Latin Americans who participated in Euromonitor International’s Lifestyle Survey in 2017 considered important to eat fruits and vegetables, limit stress level, or get regular exercise. Retailers can promote healthy living by linking in-store consumer experiences with information to guide consumers to better purchases. Latin America has been marked by years of economic and political crisis, an unusually strong US dollar, and inflation. These conditions have impacted consumers’ confidence and expenditure patterns. Over 48 per cent of Latin Americans – the highest percentage among all regions – intend to decrease their overall spending over the next year. Despite a preference to save more money, consumers are willing to continue spending on experiential purchases. Retailers have the opportunity to build an experience around purchases made in their stores to take advantage of this consumer preference.
In Argentina, Torre Puerto Santa Fe S.A. and Rusitano S.A. presented the Puerto Plaza Mall & Towers project which was presented to the public on 19 February. Located in the heart of Santa Fe harbor, the scheme aims to turn the space into one that will cover all the service needs of this emblematic area. With an innovative and sustainable design, it will be a common place where the city and the natural spaces combine and become a meeting point for families and friends. The space, with an area of 14,000sq m GLA, will have several beauty and healthcare facilities together with a gastronomic offer and over 60 retail spaces plus 120 parking lots. The investment required will be over $10M and its opening is expected in November 2019.
Finally, at the end of 2018, the building of the mega park Maximall Pompeii started in Via Plinio, Torre Annunziata. The project, designed by the multi-award winning Design International, has head turning figures: 150 millions euros investment, 200,000sq m development and 48,000sq m GLA, 200 international and national brands presence, a 4-star hotel with 120 beds, 4,000 parking units and a 3,000 sqm multiplex cinema with 8 screens and 24 restaurants distributed in 4,000sq m in the Piazza food, designed in the same style as the near Piazza del Plebiscito. The multifunctional centre is located a few steps from Maximall Oplonti and neighbouring the Pompei excavations and is projected to be one of the referral points in the Italian sector after its opening in 2019.
The largest mall in the northern region of Rio Grande do Sul, Passo Fundo Mall has a total of almost 50,000sq m of built area across three fl oors. It houses over 200 stores including anchor stores, megastores and satellite stores, totalling 30,000sq m of GLA. The parking area has about 2,000 spaces. With a privileged location in the district of Sao Cristovao, the scheme serves a catchment area of one million inhabitants across the entire northern region of Rio Grande do Sul.
Custom planned to offer a new level of comfort and now the state’s largest and best shopping and leisure destination, the Cuiabá Station Mall was delivered in October last year. The scheme had been conceived using the latest mall innovations to provide an advanced, social and entertainment centre for the families of Greater Cuiabá and of the region. All in all, there are 284 stores, eight anchor stores, 16 megastores and over 200 satellite stores, including some of the largest in the state. The centre features parking for 2,000 vehicles, seven movie theatres, gourmet promenade, games area, a pet park and an innovative food hall and service promenade. The project was developed by brMalls and spreads over 47,000sq m.