LATIN AMERICAS ROUNDUP


LATAM shows no signs of a let-up in digital retail pursuit


Cellshop’s expanding footprint in Paraguay and Dufry Group’s budding digital strategy reflects the progressive adoption of new omni-channel initiatives by regional operators as Latin American countries continue to pick up the economic pace, discovers Claire Malcolm.


I


n April 2017, the Central Bank of Paraguay revised GDP growth to 4.2% for the year (up from 3.7% and


against an IMF rate of 3.9%), a figure that kicks to the curb the 0.9% released by The World Bank for Latin America and the Caribbean. A more solid economic footing in


neighbouring Argentina and Brazil is set to boost export potential, but landlocked Paraguay is also banking on a strong domestic position, underpinned by its resilient appeal as an affordable manufacturing and business base. Paraguay’s Minister of Finance,


Lea Giménez is forecasting +3.9% economic growth this year, against +3.8% from The World Bank, and tourism revenues represent a growing opportunity for the country’s retail sector. According to macroeconomic data


source CEIC, tourism revenues grew by 2.3% year-on-year in December 2016. While this was down on 2015, the country’s Minister of Tourism, Marcela Bacigalupa, reported visitor numbers close to 1.3m in 2016, with The World Bank calculating tourism receipts of US$356m at year-end. Christian Dalmasso, Development


and New Projects Manager for Grupo Cell Motion, the company behind successful tax free department store


Cellshop in the triple frontier town of Ciudad Del Este, is confident that Paraguay’s investment desirability can only grow. “It’s a haven for (mainly Brazilian)


companies looking to establish operations and is becoming the ‘Mexico of the Mercosur’, or even the next China, with the number of maquiladores (foreign-owned factories) increasing dramatically every year due to high operating costs elsewhere,” he explains. He adds that with low


manufacturing prices beating the cost of Asian imports, manpower coming in at around 30% cheaper than Brazil, a 50% saving on energy costs and land selling for up to 30% less than in Brazil, the decision to invest is a no-brainer.


Christian Dalmasso, Development and New Project Manager, Cellshop.


MARCH 2018


Image makeover As Paraguay’s second largest city, gateway to the Iguazú Falls and a vital import and export and dual free trade zone, Ciudad Del Este has been a commercial hotspot for several decades. The triple frontier town is a heartland of tourist retail activity, but the


former contraband capital has worked hard in recent years to shed its negative image by undergoing an aesthetic and commercial makeover. Both Mannah Duty Free and Monalisa have had boots on the ground since the 1970s and a constant inbound rotation of high domestic-taxed retail tourist arrivals from Argentina and Brazil has sustained demand for a diverse range of products. Despite being the newer kid on the


block since opening in 2015, Cellshop has seen the city go through a sea change, as Dalmasso explains. “As far as free zones and border


operations are concerned, the government, and local municipalities are working to bring about dramatic changes to border towns, with the


Paraguay’s Minister of Finnance, Lea Giménez, is forecasting +3.9% economic growth this year, against +3.8% from The World Bank, and tourism revenues represent a growing opportunity for the country’s retail sector.


TRBusiness TRBUSINESS 61


Above: Cellshop reports that consumers such as Brazilians are opting to browse online before visiting the store to receive a fuller service experience.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92