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The Brazilian hypermarket industry is discovering a new trend – the market for DIY and home improvement products
The hypermarkets in Brazil have increased the amount of space they allot to DIY and garden products. They are suitable outlets for the sale of DIY products of the cash and carry kind developed by Brazilian manufacturers. Women play a significant role when it comes to hypermarket turnover, and things are not so very different in the DIY segment.
Between 1998 and 2000 the hypermarkets increased their floorspace for DIY and garden products by more than 100 per cent, so that the big operators today offer DIY articles and automotive accessories as well as garden and pet supplies on an area of 200 m² to 300 m².
The Extra hypermarkets are developing the sale of DIY products.
Over the past two years the hypermarkets have been investigating customer demand in their regional sales outlets and have come to the conclusion that the tastes and preferences of consumers in Brazil vary strongly according to region and that their stores should orientate their product offer more towards local requirements. A second finding that has come out of this survey is that DIY customers are net contributors to the improvement of hypermarket results.
“A total of 52 per cent of the Brazilian DIY trade is covered by the big stores,” explains Simone Afonso Castro, business manager at Martins S.A., the biggest food and non food wholesaler in South America, “and 80 per cent of Brazilian consumers like the advantages provided by shopping for different products under the one roof, as is the case in hypermarkets and DIY superstores: easy parking, open at weekends, cash and carry items, great merchandising display, good sales promotions, etc..” It is her opinion that the sale of DIY products could be grown by 70 per cent. Today this comes to 2.2 bn reals (€ 3.7 bn), or 3.7 per cent of the overall hyper-market turnover, which amounts to 60.1 bn reals (€ 99.89 bn). The following DIY and garden products are to be found on hypermarket shelves: tools and hardware, furniture and shelving, lighting and electrical, sealants and adhesives, paint and decorative products, housewares, garden and outdoor leisure products, plus pet supplies and automotive accessories. Carrefour and Extra (Pão de Açúcar group) are the first hypermarket operators in Brazil to present the concept of DIY to consumers and every year smaller hypermarkets are following this new and booming product trend.
Between 1998 and 2000 the hypermarkets increased their floorspace for DIY and garden products by more than 100 per cent, so that the big operators today offer DIY articles and automotive accessories as well as garden and pet supplies on an area of 200 m² to 300 m².
The Extra hypermarkets are developing the sale of DIY products.
Over the past two years the hypermarkets have been investigating customer demand in their regional sales outlets and have come to the conclusion that the tastes and preferences of consumers in Brazil vary strongly according to region and that their stores should orientate their product offer more towards local requirements. A second finding that has come out of this survey is that DIY customers are net contributors to the improvement of hypermarket results.
“A total of 52 per cent of the Brazilian DIY trade is covered by the big stores,” explains Simone Afonso Castro, business manager at Martins S.A., the biggest food and non food wholesaler in South America, “and 80 per cent of Brazilian consumers like the advantages provided by shopping for different products under the one roof, as is the case in hypermarkets and DIY superstores: easy parking, open at weekends, cash and carry items, great merchandising display, good sales promotions, etc..” It is her opinion that the sale of DIY products could be grown by 70 per cent. Today this comes to 2.2 bn reals (€ 3.7 bn), or 3.7 per cent of the overall hyper-market turnover, which amounts to 60.1 bn reals (€ 99.89 bn). The following DIY and garden products are to be found on hypermarket shelves: tools and hardware, furniture and shelving, lighting and electrical, sealants and adhesives, paint and decorative products, housewares, garden and outdoor leisure products, plus pet supplies and automotive accessories. Carrefour and Extra (Pão de Açúcar group) are the first hypermarket operators in Brazil to present the concept of DIY to consumers and every year smaller hypermarkets are following this new and booming product trend.
