This article was written by the team of Food Retail Italia, the official representative of the international trade fairs Cibus and TuttoFood Milan in Latin America.
Over the past decade, Colombia’s mass market retail sector has undergone one of the most profound transformations in all of Latin America. Its evolution has unfolded along three major axes: the modernization of distribution networks, the redefinition of consumption models, and the rapid consolidation of the discount format as the driving force of the market.
By 2025, the sector has reached a clear stage of maturity. The hard discount channel—led by D1, Ara, and Ísimo—now accounts for around 40% of the market, an unthinkable share just a few years ago. This expansion has been fueled by a combination of structural forces: limited purchasing power among large portions of the population, rising living costs, and the discounters’ ability to build efficient, nationwide logistics systems. The result is striking — a 99.5% household penetration rate, turning discount retail into not merely a shopping option, but a deeply rooted social habit.
At the same time, traditional and regional supermarket chains — such as Éxito, Olímpica, and Colsubsidio — still hold a relevant share (around 30% of the market), offering broader assortments, loyalty programs, and proximity services. Yet the competitive pressure from discounters has forced these players into a profound strategic rethink: investing in digital transformation, dynamic loyalty programs, e-commerce, and integrated logistics to protect profitability and retain middle-income urban households.
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The hypermarket format, once a symbol of modernity in Colombian retail, now plays a more limited role. Chains like Alkosto, Jumbo, and Makro are shifting toward hybrid and wholesale models, catering both to high-volume consumers and small independent traders. Together with the wholesale channel, this segment represents another 20% of the market, reinforcing a growing polarization between extreme convenience and value through scale.
From a macroeconomic perspective, Colombia’s retail growth mirrors the resilience of its national economy, which has maintained momentum despite inflationary pressures. In 2024, total supermarket sales reached 76.7 trillion Colombian pesos (approximately $19.6 billion), tripling 2013 levels — a clear indicator that domestic consumption remains the country’s main economic engine.
Another defining element of this transformation is the reshaping of the corporate landscape. The gradual exit of French groups — Carrefour years ago, and now Casino in the process of leaving the continent — has opened the door for more agile regional operators focused on sustainable growth. Among them, Jerónimo Martins, with its Ara brand, stands out as a model of thoughtful, territory-driven expansion: prudent investment, active consumer listening, and a strong local supplier network. The Portuguese group has shown that strategic humility can be a lasting competitive advantage.
The effects of this transformation are remarkable. On one hand, modernization has drastically reduced the weight of informal commerce, concentrating market share among formal operators as never before. On the other, it has strengthened domestic companies, allowing them to build capital, integrate into regional supply chains, and even begin exporting their operational expertise to neighboring Andean markets. Colombia, once considered an emerging market, is now positioned as a genuine retail innovation hub for Latin America.
Looking ahead, the challenge will be to balance growth with profitability. The territorial expansion of discount chains is approaching saturation in urban areas, driving investment toward rural and secondary cities. At the same time, the still-emerging digital transformation marks the next frontier: contactless payments, data analytics, and AI-driven inventory management are redefining the entire value chain.
As it enters 2026, the Colombian mass market retail landscape stands as one of the most dynamic and competitive in the region: concentrated yet vibrant, with regional players on the rise and consumers increasingly informed and price-conscious.
Like Europe two decades ago, Colombia is laying the groundwork for a new cycle of consolidation and innovation that could once again redefine retail in Latin America.
