This article was produced by Food Retail Italia, the official ambassador of the international food exhibition TuttoFood Milano. The company operates across Latin America with the mission of building a bridge between Southern European producers and South American retail distribution.
In Latin America’s retail sector, the hard discount model has shifted from niche experiment to disruptive force. Colombia’s rapid transformation — where discounters now account for a quarter of FMCG sales — is being closely mirrored by Peru, where market leader Supermercados Peruanos has redirected its investment strategy towards the aggressive expansion of Tiendas Mass.
The Colombian blueprint
The Colombian experience remains the benchmark. Chains such as D1, Tiendas ARA and Isimo have thrived by adhering to three non-negotiable principles: a dominant share of private labels, prices at least 30–40 per cent lower than branded equivalents, and a tightly curated assortment of no more than 700 SKUs. The model hinges on efficiency — stores averaging 300–500 square metres, minimal staffing, and logistics systems designed to touch goods as little as possible.
The result has been a dramatic reshaping of consumer behaviour. Households have traded brand loyalty for tangible savings, with discounters growing from 2 per cent of the market in 2014 to 25 per cent today.
Peru’s answer: Tiendas Mass
In Peru, Supermercados Peruanos, part of the Intercorp group, has embraced the Colombian playbook. Having built its reputation with Plaza Vea, Vivanda and Makro, the company is now funnelling investment into Tiendas Mass, its hard discount arm.
Mass has already surpassed 1,000 outlets nationwide, stretching across 137 districts and nine regions, from Lima to Piura, Trujillo and Arequipa. Each store averages around 150–200 square metres and carries a stripped-down assortment of roughly 750 SKUs. Private labels such as Valida (for canned goods, condiments and pantry staples) and El Granelito (legumes, grains and bulk products) form the backbone of the offer.
The proposition is clear: essential products, competitive prices, and neighbourhood proximity. By expanding at speed, Mass not only competes with traditional supermarkets but also threatens Peru’s vast network of bodegas, the small independent shops that dominate local commerce.
A calculated gamble
The move is not without risk. Brand loyalty remains strong in parts of Peru, and consumer acceptance of private labels is still maturing. Success will depend on delivering a visible and credible price gap, ensuring quality perceptions are not compromised, and maintaining flawless logistics as the network sprawls across diverse geographies.
Regional implications
Latin America’s embrace of hard discount reflects a broader trend: households squeezed by inflation and stagnant wages are willing to sacrifice brand familiarity for value. For retailers, the model offers scale, bargaining power and cost discipline. For incumbents, it represents an existential challenge.
If Mass sustains its current trajectory, Peru could soon mirror Colombia’s hard discount revolution — proof that the format is no longer a fringe experiment but a structural pillar of modern retail across the region.
For further information, please contact the Bogotá office, Ms Sandra Ayala, at s.ayala@fooditaliaretail.com.
