Study points out the advantage of cash-and-carry over hypermarkets and supermarkets

It is not new that Brazilians have been choosing cash-and-carry as the preferred point of their purchases. A recent move by Grupo Pão de Açúcar to sell 71 Extra hypermarket stores to Assaí showed that retailers have already realized that, even more in times of high inflation like the current one, the economy will dictate customer behavior.

A study carried out by the National Confederation of Commerce of Goods, Services and Tourism (CNC) put at the tip of the pencil the economic advantage of the format over other types of stores, such as hypermarkets and supermarkets: on average, according to the survey, the purchase of a basic food basket is 18% cheaper in cash-and-carry stores. In certain products, the difference in value reaches 33%.

For Fábio Bentes, chief economist at CNC, the difference in value can be considered significant – in all of them, the cash and carry, also known as “cash & carry”, proved to be cheaper. “These are essential consumer items and should not have such a large price variation compared to the two business models”, says Bentes.

The economist claims that the moment of unemployment and inflation helps explain the preference for cash and carry. “Given the crisis we are facing and the loss of Brazilian purchasing power, it is common to see the explosion of cash-and-carry stores in the country. This economy they provide makes the business more attractive to people”, he says.

Change

The cash-and-carry business, which was previously preferred by small traders – above all owners of restaurants and snack bars – has already become a destination for individual consumers. Now there is no more bulk purchase requirement and you can pay with all credit cards. In addition, all the chains – such as Atacadão, Carrefour, and Assaí – have been expanding the number of stores in an accelerated manner.

According to an annual study by the Brazilian Association of Wholesalers and Distributors of Industrialized Products (Abad), the self-service wholesalers model was the one with the largest number of new stores in operation during the pandemic. With sales of BRL 64.7 billion, the sector grew 24.9% in 2020.

In terms of purchasing experience, however, cash-and-carry still leaves something to be desired, according to consultant Eugênio Foganholo, from Mixxer consultancy. “Customers know that in a supermarket they have a series of facilities that are not available in cash-and-carry.

However, he exchanges the experience for the economy”, he says.

Assaí is keeping an eye on this deficiency and says that, especially in the units it bought from Extra Hiper, there will be a transformation of the model. “At the end of the day, I need to bring a service with greater experience, but with offers”, says the operations director at Assaí, Anderson Castilho.