Fitch Ratings analysts are optimistic about the retail sector in Latin America as macroeconomic conditions in the region continue to improve. Stable inflation and decreasing interest rates are expected to benefit retailers this year. Additionally, increased competition from online retailers has prompted traditional brick-and-mortar stores to enhance their product offerings, services, and overall shopping experiences to maintain market share.
Retailers in Latin America are focusing on a more balanced approach between growth and profitability as they execute digital strategies. They are being more careful with their capital expenditures, investing in logistics optimization and strengthening customer relationships for long-term value. Inventory management is crucial for preserving profitability, and merchants have been working on refining their inventory levels for efficiency.
Despite the improving retail conditions, international debt markets remain volatile due to global macroeconomic environments and geopolitical risks, causing disruptions in stability. Some of the top retailers in Latin America include FEMSA Comercio, Grupo Comercial, Soriano Organization, and Grupo Coppel in Mexico, Cencosud and Falabella in Chile, and Natura & Co. in Brazil.
In Mexico, Walmart de México y Centroamérica, also known as Walmex, holds a dominant position in the market with over 2,800 stores, 300 Walmart Supercenter units, and 167 Sam’s Club stores. Walmex is the largest division of Walmart outside of the U.S. and continues to be a key player in the retail landscape in Latin America.