Since the 1990s, achieving organic growth and attractive returns on investment has been a major challenge for formal players in Latin America. In a region marked by socioeconomic characteristics that lead to a lower penetration of modern retail formats—particularly in lower income segments—pricing is a crucial component of a retailer’s value proposition.
In this context, understanding how consumers think becomes even more critical. Pricing is extremely important to consumers in their choice of store, and changes in the pricing level can be immediately reflected in the bottom line. Making the right decisions on price investment holds tremendous potential for retailers.
To further understand pricing and retail customers, the Latin America Council commissioned McKinsey & Company, a leading international consulting firm, to develop a report on price perception and its implications for retailers. Read the report below for shopper insights that will help you in improving the customer experience at your store.