*Per John Alberto Giaccomassi
In 2024, the supermarket retail sector in Brazil continued to surprise with its ability to adapt and grow, even in a scenario of more modest expectations. At the beginning of the year, Tendências Consultoria predicted an increase of 1.9% for the sector, after a growth of 4.1% in 2023. Even so, supermarkets responded boldly: they invested in digitalization and technological innovations, seeking to align with consumer preferences and offer an increasingly practical, convenient and connected experience. Data from Monthly Trade Survey, released in November by IBGE, show an acceleration in sales in Brazilian commerce in September. The study highlights that, throughout 2024, the performance of supermarkets has contributed to sustaining this growth, and that food retail sales have the greatest weight in the institute's survey (55.6%).
Looking ahead to 2025, new challenges are already on the horizon. One of the main topics for next year is undoubtedly Tax Reform, which brings to the fore issues such as the Selective Tax, exempt products and items with partial exemption. These changes may require quick adaptations from businesspeople in the sector.
On the other hand, technological innovations continue to advance to optimize productivity and efficiency in the segment: from smart pricing systems to the use of predictive AI and self-service solutions.
Operational efficiency
After a period of booming new supermarket openings, I have observed a movement among entrepreneurs to reduce or slow down this movement. On the other hand, at this time, greater attention is being paid to optimizing the productivity of existing units, in order to effectively improve operations and increase profitability.
According to ABRAS Operational Efficiency Survey 2024, the segment presented 98.13% of efficiency in this period, with a drop of 0.08% in relation to the previous year. But the most worrying point of the study is the increase in the operational breakage rate, which jumped from 56% to 59%. Factors such as physical damage to products, expiration of the expiration date, errors in handling and storage of goods and damage to equipment are responsible for the loss of products during the operations cycle, the type of loss that no supermarket owner wants in their store.
To combat this problem, it is important to invest in technologies that automate and digitize time-consuming and repetitive processes, ensuring efficiency, quality and safety in these activities. A practical example is replenishing and checking shelves, work that takes hours or even days, but which can now be done with the help of augmented reality solutions that optimize the inspection of items and their prices. Other technologies such as IoT sensors or real-time inventory management systems also support operational productivity, in addition to ensuring reliable store auditing.
Pricing strategy
I always say in my conversations that the heart of a supermarket's strategy is buying well. To sell well, they need to buy well. But, more than that, it is very important to be aware of business strategies, and this invariably involves pricing.
The use of artificial intelligence (AI) for smart pricing is becoming a vital strategy, as the technology enables dynamic price adjustments, improving brand positioning and increasing competitiveness at the time of purchase. This approach helps to better understand consumer behavior and respond quickly to market fluctuations, without losing profit margins.
Specialized ERP
Today, we see a movement of investors, including foreign ones, in Brazilian supermarket businesses. And with many retailers seeking to attract new investments, the automation of accounting audits is a fundamental item to ensure transparency and operational efficiency.
Investing in specialized back-office systems may seem like old talk, but I see on a daily basis that there are still supermarkets that do not take advantage of everything that a dedicated system can offer. A specialized ERP facilitates the digitalization and control of all administrative routines, improving the governance and compliance of the business.
Furthermore, as I have already mentioned, during 2024 we will be following the debate surrounding Tax Reform in Brazil. And, even though it is not yet fully concluded, business owners are aware of the obligation to follow the new tax rules, which will have a direct impact on retail operations. In this sense, investing in specialized systems that simplify and are efficient for this time of change is essential to ensure compliance and tax optimization, as well as to guarantee the continuity of operations, especially in the food retail sector.
Predictive AI applied to strategy
Artificial Intelligence is the hot topic of the moment and will continue to be a trend in 2025. Speaking more specifically, I am excited about the application of Predictive AI in supermarket retail, with data analysis and operational histories that can offer great advantages in purchasing and inventory management.
This type of artificial intelligence can help supermarkets predict demand based on seasonality, for example, ensuring purchases at the right time and at the best price, sending out-of-stock or excess stock, which results in more efficient operations and reduced waste.
Customer Experience
Focusing on the experience, as always, is essential. Investing in a range of strategies is the way to attract and retain your customers. Many supermarkets already invest in apps and e-commerce, whether their own or third-party, that allow them to be where the customer is – a basic rule for the success of any retailer.
In physical stores, self-service continues to be on the rise. Even with its widespread implementation, it still represents an opportunity to improve the customer experience by offering convenience and reducing queues. Want proof? Data from a survey carried out by the São Paulo Supermarket Association (Apas) indicate that 7 out of 10 Brazilians prioritize self-checkouts to complete their purchases. In other words: a trend that cannot be ignored.
By 2025, the message is clear: technology is no longer a differentiator, but rather the essence of success in the supermarket sector. The ability to adapt and the constant search for innovation will be the fuel for the growth and consolidation of companies in an increasingly competitive market. Investments in technology next year will not only be a matter of keeping up with trends, but of ensuring survival and prosperity in the new retail scenario.
*João Alberto Giaccomassi, Director for Supermarket Retail at TOTVS
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies