Growth in Latin America
By David Dorf on Jul 22, 2013
The Latin American economy continues to grow, and with it more retailers are investing in their IT. I recently traveled to Honduras with several retail industry leaders to visit Plan Escalon, a school that receives support from Retail ROI. I told the roughly 600 students and staff that Oracle was committed to growth in the region and already has offices in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Peru, and Venezuela.
Retailers such as Grupo Pão de Açúcar, Mercal, OXXO, Farmatodo, Renner, Falabella, Pernambucanas, and CM continue to expand domestically, while North American retailers like Best Buy, Lowes, Walmart, and 7-11 move further into Latin America.
Unfortunately the growth is not spread evenly with much concentrated in Mexico and Brazil, and overall economic growth is predicted to slow from 4.5% to 3.75% in the coming years. That said, Latin American growth is still substantial and retailers continue to benefit from an emerging middle class. As employment improves and corruption lessens, the region should prove to be fertile ground for further retail expansion.
If the students I met in Honduras are any indication of the future of Latin America, then I'm not worried in the least. The future looks bright for this region of the world.