EMIS Insights - Colombia Consumer Goods and Retail Sector Report H1 2024

An EMIS Insights Industry Report
Colombia Consumer Goods

and Retail Sector Report H1
2024
Colombia Consumer Goods and Retail Sector Report H1 2024 Any redistribution of this information is strictly prohibited.
An EMIS Insights Industry Report Copyright © 2024 EMIS, all rights reserved.
General Overview
Sector Snapshot
Colombia's GDP grew by 0.6% y/y in 2023, primarily due to a decrease in household consumption growth,
which reduced from 10.7% y/y in 2022 to 1.1% y/y in 2023. The retail sector was one of the worst affected,
decreasing by 2.8% y/y. In December 2023, the retail trade index decreased by 4.5% y/y in real terms, due to
a 78% contraction of the sub-sectors, as only alcoholic beverages and tobacco, personal care items and
household cleaning products showed an annual expansion in sales. By contrast, the automotive sector
exhibited the poorest performance with a decline in sales of -23.7% y/y. The decrease in retail activity was
in line with the deceleration of household consumption of durable and semi-durable goods due to high
inflation and interest rates. In the same month, inflation remained above the Central Bank's target, standing
at 9.3% y/y, mainly explained by transport prices that experienced the most significant increase at 15.4%
y/y, primarily due to the higher price of gasoline. Following closely, restaurants and hotels saw the second
highest growth rate at 13.2% y/y, largely attributed to the rise in the cost of meals prepared outside the
home, which surged by 14.8% y/y.
In 2022, household consumption was the main driver of GDP growth. Sales from supermarkets, the largest
retail sector, stood at COP 170.1tn, 3.4% y/y lower in real terms compared to 2021, due to the rise in
inflation, which stood at 13.1% at the end of that year. Within the segment, small local grocers had the
largest share in total sales (46.9%), followed by discounters (13.5%) and supermarkets (10.5%).
Discounters have gained in popularity among Colombian consumers due to their competitive prices and
diverse product selections, with D1 being the bestselling retail brand.
Specialist stores sales stood at COP 111.8tn as of end-2022, being the second largest retail segment in
terms of sales. Home and garden stores accounted for 33.5% of the channel’s sales, followed by apparel
and footwear stores (18.1%) and electronic and appliances stores (15.3%). In the same year, only health
and beauty products and general merchandise increased in real terms with growths of 7.7% y/y and 0.4%
y/y, respectively.
The shopping centre sector has experienced a slowdown since 2019 with just two shopping centres
inaugurated per year. In 2022, the number of centres increased by three from 2021, to a total of 261.
According to Raddar, a Colombian company that analyses consumers, sales from shopping centres in
2022 reached COP 43.8tn, with a growth of 5.5% y/y.
Online retail continues to be the most dynamic segment in the retail sector. The advancement of payment
methods, such as digital transactions, provides significant benefits for commerce by facilitating secure
transactions. As reported by the Colombian Chamber of E-Commerce (CCCE), the number of online
transactions stood at 370.5mn in 2023, 11.5% y/y higher than 2022.
Sector Outlook
In 2023, the slowdown in economic activity consolidated and deepened with GDP growth of 0.6% y/y,
explained by strongly moderated domestic demand. Sectors with the most pronounced weakness include
private investment, durable goods consumption and the productive sectors associated with these
categories. However, the improved inflation performance, which stood at 7.7% y/y as of February 2024,
benefiting from lower domestic demand, has allowed the Central Bank to reduce the interest rate to 12.25%
as of March 2023. In 2024 the economy is expected to gradually recover and, according to Central Bank
estimates of March 2023, GDP is expected to grow by 1.1% y/y in 2024. As reported by Bancolombia
Research, despite interest rate cuts, the monetary policy stance will remain contractionary throughout the
year, which will continue to affect household budgets and further impact demand for durable goods.
According to their estimates, public spending is anticipated to be the main engine of the economy,
increasing by 1.2% y/y, while private consumption will grow by just 0.1% y/y. Moreover, high interest rates
will subdue retail activity and demand for logistics services, especially during the first semester, while
financial pressures on some households may reduce the resources allocated to activities such as tourism
or dining out. Consequently, Bancolombia estimates that the commerce, hotels and restaurants sector will
decrease by 1% y/y.
Main Economic Indicators
Name 2019 2020 2021 2022 2023
Total Population, mn, year-end 49.40 50.37 51.05 51.61
Gross Domestic Product (GDP) 1,060,068.00 998,471.00 1,192,634.00 1,469,791.00 1,572,658.36
GDP per Capita: USD 6,436.51 5,304.29 6,182.71 6,624.17
Consumer Price Index, year-end, y/y change, % 3.80 1.62 5.62 13.12 9.28
Unemployment Rate 9.95 13.91 11.10 10.27 10.01
Monetary Policy Rate, year-end, % 4.25 1.75 3.00 12.00 13.00
Exchange Rate USD/COP, year-end 3,277.14 3,432.50 3,981.16 4,810.20 3,822.05
Household Final Consumption Expenditure, curre… 197,789.62 203,090.67 253,151.76 304,196.48 330,009.04
Household Final Consumption Expenditure, % of … 70.52 73.93 75.11 77.53 80.15
Consumer Loans, year-end, current COP bn 159,711.98 163,254.21 183,486.13 216,629.01 213,900.12
Consumer Confidence Index Evolution,* points, y… -9.50 -10.40 -7.00 -22.30 -17.30
Total FDI Inflow, USD mn 13,989.15 7,458.62 9,561.34 17,182.52 17,446.18
FDI Inflow in Wholesale, Retail, Restaurants and … 2,125.31 846.58 957.35 1,541.71 1,708.96
FDI Inflow in Wholesale, Retail, Restaurants and … 10.71 8.39 7.52 6.96 7.85
Source: Central Bank of Colombia, DANE, Fedesarrollo, IMF, World Bank
Sector Indicators
Name 2019 2020 2021 2022 2023
Wholesale, Retail and Repair GVA, current prices, COP bn 96,445.00 97,793.00 122,884.00 150,678.00 163,632.49
Wholesale, Retail, and Repair GVA, constant prices, y/y change, % 4.04 -3.70 15.44 7.20 -2.78
Wholesale, Retail, and Repair GVA, current prices, % of GDP 10.05 10.75 11.38 11.40 11.54
Total Supermarket Real Sales, COP bn, constant Dec 2018 prices, y/y c… 1.85 3.47 0.70 -3.44
Footwear and Leather Stores Real Sales, y/y change, % -33.54 43.73 29.91 -3.00
Textiles and Clothing Stores Real Sales, y/y change, % -26.25 46.33 19.41 -5.57
Computers, Household Appliances and Furniture Stores Real Sales, y/y … 28.54 23.89 18.06 -11.53
Food and Beverage Stores Real Sales, y/y change, %
Pharmaceuticals and Personal Care Stores Real Sales, y/y change, % -0.23 8.98 2.40 -5.92
Books and Newspapers Stores Real Sales, y/y change, % -15.53 0.90 33.59 -4.62
Motor Vehicles and Motorcycles for Household Use, y/y change, % -21.60 42.48 7.56 -18.09
New Road Vehicles Sales, units, y/y change, % 2.74 -28.45 32.77 4.83 -28.86
New Passenger Cars Sales, units, y/y change, % 39.11 -21.87 -35.78 58.22 -32.34
New Utility Vehicles Sales, units, y/y change, % 4.82 -23.49 48.29 1.64 -11.08
New Pick-Up Vehicles Sales, units, y/y change, % 15.40 -27.77 -36.80 -13.39 10.38
New Commercial Vehicles, Load Less Than 10.5 Tons, Sales, units, y/y … 10.69 6.06 115.79 10.62 -38.61
E-Commerce Stores Real Sales, y/y change, % 111.62 49.40 -23.08 8.36
Source: DANE, Andemos
Consumer Confidence
Consumer confidence, as measured by the Colombian Foundation for Higher Education and Development
(FEDESAROLLO), remained negative in 2023 due to high inflation, high interest rates and economic
deceleration, which affected consumers. However, it recovered from -28.6% in January 2023 to -17.3% in
December 2023. The December figure was mainly explained by a better than expected economic result,
which increased from -16.5% to -9.1% in the same period, compensating for the economic conditions,
which rose from -46.8% to -29.6% between January and December. Consumer confidence increased in the
five cities analysed and in the high and middle socioeconomic levels. The cities with the lowest consumer
confidence levels were Medellin (-32.3%), Bogota (-17.8%) and Bucaramanga (-17.1%). In the same month,
willingness to purchase housing and durable goods such as furniture and household appliances
decreased, while willingness to purchase a vehicle increased compared to November. As of February 2024,
the positive trend continued, and consumer confidence stood at -9.4%, making it the second best balance
since August 2022 (-2.4%). The economic expectations index was at -0.1% while economic conditions
stood at -23.4%. Additionally, the willingness of consumers to purchase durable goods stood at -28.1%, 5.4
percentage points higher compared to the balance recorded in 2023 Q4. In the remaining months of 2024,
consumer confidence will continue to improve, given lower inflation and reduced interest rates.
Consumer Confidence Index,* % Consumer Expectations Index,* %
points points
-6 0
-0.10
-7.90
-9.40
-3.50
-12 -13.00 -5
-14.10 -14.00 -6.50
-8.90
% Point
% Point
-17.40 -17.30 -9.10
-18 -18.80 -10
-11.00 -10.70
-20.90
-22.80
-14.50
-24 -15 -15.70
-16.50
-17.70
-18.30
-28.60 -28.80
-30 -20
01/2023 07/2023 01/2024 01/2023 07/2023 01/2024
Consumer Confidence Index Consumer Expectations Index
Source: Fedesarrollo Source: Fedesarrollo
* The index is calculated as the difference between the percentage of positive and negative responses
Consumer Loans
The outstanding consumer loans portfolio reached COP 213.9tn as of December 2023, a decrease of 1.3%
y/y. According to the Financial Stability Report by the Central Bank of Colombia (to Q3 2023), this lower
dynamism is consistent with the increase in the monetary policy rate that began at the end of 2021, which
has led to lower household indebtedness from the levels observed in 2022. The slowdown in household
credit growth helped to further decrease the debt-to-available income ratio, below the highs reached in
2021. In line with a slowdown in spending and a backdrop of household indebtedness, gross savings
continue to recover. According to the latest information from the National Administrative Department of
Statistics (DANE), in the third quarter of 2023, savings approached pre-pandemic levels. Moreover, due to
the economic adjustment process and high risk-taking by some credit institutions during 2022, the
consumer portfolio experienced the highest deterioration. However, since June 2023, the growth of non-
performing loans has been decreasing and a moderation in loan quality indicators is expected during 2024.
Outstanding Consumer Loans Outstanding Consumer Loans by
Portfolio, COP tn, y/y change, % Type, December 2023
240 24
216.4 216.4 215.7 215.7 215.3 213.9 8.37 %
16.6
180 14.4 16
12.3
10.3
COP tn
8.2
120 8
%
6.1
3.2
1.7
60 -0.3 0
-2.4
0 -8
01/2023 07/2023 01/2024
91.63 %
Outstanding Consumer Loans Portfolio, COP bn
y/y change % Consumer Microcredit
Source: Financial Superintendence of Colombia Source: Financial Superintendence of Colombia
Inflation
In 2023, inflation exhibited a downward trend, dropping from 13.1% y/y in December 2022 to 9.3% y/y in
December 2023. This reduction was largely explained by a decrease in food inflation that went down from
27.8% y/y to 5% y/y in the same period, driven by lower agricultural input prices, which added to the effect
of high inflation bases the previous year. Conversely, non-food inflation reached a peak of 11.6% y/y in
June and gradually moderated to 10.3% y/y by end-2023. Services inflation exhibited smaller increases
during the year and remained at elevated levels, exerting pressure on total inflation, standing at 8.9% y/y as
of December 2023. Goods inflation, which accounts for nearly 18.8% y/y of total inflation, contributed to a
great extent to the moderation, counteracting the positive trend of regulated inflation that increased from
11.8% y/y in December 2022 to 17.2% y/y in December 2023 due to a rise in the price of gasoline.
In February 2024, inflation stood at 7.74% y/y with the services component being the main risk due to its
high indexation to past inflation and minimum wage, which increased by 12% y/y. For the rest of the year,
inflation will continue to decline, supported by the high levels of comparison in 2023. According to the
survey by the Central Bank to economic analysts, inflation is expected to end the year at 5.5% y/y, above
the target of 3% y/y.
National Consumer Price Index, y/y Monetary Policy Rate, period-end, %
change, %
13.5
14 13.25 13.25 13.25 13.25
13.34
12.82
12.37 13 13.00 13.00
12 11.79
12.75 12.75
10.99
% pa
10.48
12.5
10
%
9.28
8.35
8 12
7.37
6 11.5
01/2023 07/2023 01/2024 01/2023 07/2023 01/2024
National Consumer Price Index, y/y change, % Monetary Policy Rate, period-end, %
Source: DANE Source: IMF
Foreign Direct Investment
In 2023, total FDI stood at USD 17.4bn, 1.5% higher than in 2022. Of this, the wholesale, retail, restaurants
and hotels industry attracted a total of USD 1.7bn, or 7.8%. The sector had the fourth highest foreign direct
investment, surpassed by only mining, manufacturing and finance. Foreign companies have been active in
acquiring minority stakes in Colombian retailers, mostly through seed funding rounds, and across different
channels and segments. In 2023, Seeri, a Colombian-based B2B marketplace, raised USD 2.5mn in a pre-
Series A funding round, with significant investment from American venture capital firm H20 Capital.
Additionally, Pandora, a Danish jewellery manufacturer and retailer, purchased 14 jewellery stores in
Colombia previously operated by its local partner, RUA Group.
FDI Flow in Wholesale, Retail, FDI Flow in Wholesale, Retail,
Restaurants and Hotels, USD mn Restaurants and Hotels, USD mn,…
h f l FDI
2,400 12
2,125.31
10.71
1,800 1,708.96 10.5
1,541.71
USD mn
USD mn
1,200 9
957.35 8.39
846.58
7.85
7.52
600 7.5
6.96
0 6
2020 2022 2020 2022
FDI Flow in Wholesale, Retail, Restaurants and H… FDI Flow in Wholesale, Retail, Restaurants and H…
Source: Banco de la Republica Source: Banco de la Republica
Employment
In 2023, the average national unemployment rate stood at 10.2% – a decrease of one percentage point
compared to 2022. Consequently, labour indicators exhibited resilience amid a decelerating context.
However, starting from September until the end of the year, a deterioration was observed. After adjusting
for monthly seasonality, there was a rise in the unemployment rate, marking the fourth consecutive month
of increase. Between August and December 2023, there was a cumulative increase of 1.4 pp. Compared to
November, in December 2023, 249,000 jobs were lost and 141,000 people stopped participating in the
labour market. Compared to the figures from a year ago, the occupied population increased by 396,000
people and the sectors with the highest layoffs included manufacturing (-135,000), followed by
construction (-88,000) and communications (-66,000).
Employment Index in Retail Trade, y/y change, %
4.47
4.22 4.18 4.13
4 3.74
3.40 3.55
3.08
2.61 2.76
2.12
2
%
1.39
0.22
0 -0.27 -0.43
-2
01/2023 03/2023 05/2023 07/2023 09/2023 11/2023 01/2024
Employment Index in Retail Trade, 2019=100, y/y change, %
Source: DANE
Employment in New Motor Vehicles Employment in Non-specialist and

Retail Trade Specialist Food Stores
y/y change, % y/y change, %
12 10
7.79
8 7.56 7.5
6.37
5.63 5.98 5.80 5.75
4.15 5.23
4 5
%
2.94 4.17 4.36

1.67 3.47
0.51
0 -0.65 2.5
1.93
-1.98 1.03
-3.32
-4 0
01/2023 07/2023 01/2024 01/2023 07/2023 01/2024
Employment Index in New Motor Vehicles Retail … Employment Index in Non-specializing & Special…
Source: DANE Source: DANE
Employment in Clothing and Employment in Pharmaceutical,
Accessories Stores Medicinal, Dental Products; Perfume…
C i & T il i S
y/y change, % y/y change, %
16 8
6.78
10.05
6.26
8 7.62 6 5.74
6.45 5.54 5.50
4.37 5.19
2.61 4.86
0.07 3.98
0 4
%
%
-1.59
-2.46
-5.46 2.76
-8 2
1.43
-12.57
-16 0
01/2023 07/2023 01/2024 01/2023 07/2023 01/2024
Employment Index in Clothing & Accessories, Fo… Employment Index in Pharmaceutical, Medicinal…
Sources
Banco de Bogota
Bancolombia
BBVA
Central Bank of Colombia
Fedesarrollo
Competitive Landscape
Overview
The level of competition in Colombia’s retail trade sector is high. In 2022, the top ten companies accounted
for 30.6% of the sector’s revenues, according to EMIS Insights estimates. The sector is dominated by
foreign players, with just one domestic company among the leading ten by revenue. Organizacion Terpel, a
fuel retailer controlled by the Chilean holding Empresas Copec, is the leader with a 9.9% share of sector
revenues, according to estimates by EMIS Company Database. Brazilian retailer GPA, through its domestic
subsidiary Almacenes Exito, is active in both the supermarket and shopping centre segments and is the
second largest player with a 5.7% share of sector revenues. The domestic market continues to offer
investment growth opportunities, especially in the highly dynamic and competitive online retail and vehicle
retail channels. In 2023, Seeri, a B2B marketplace based in Colombia, secured USD 2.5mn in a pre-Series A
funding round, with leading investment from the American venture capital firm H20 Capital. Danish
jewellery manufacturer and retailer Pandora acquired 14 jewellery stores in Colombia previously operated
by its local partner, RUA Group.
Financial Performance of Retail Companies, 2023
Operating Operating Net Total

Country of
Company Revenues, COP Revenues, Debt, Assets, Retail Segment
Origin
bn y/y change COP bn COP bn
Organización
Chile 632 -97.6% 3,768 9,512 Fuel Retail
Terpel SA
Supermarkets,
Almacenes Exito
Brasil 21,048 1.8% -242 16,340 Shopping
SA
Centres
D1 SAS** Panama 13,958 40.3% 550 4,903 Supermarkets
Supertiendas y
Supermarkets,
Drogueria Colombia 7,728 16.3% 453 5,301
Drugstores
Olimpica SA**
Jeronimo
Martins Portugal 8,621 61.6% 1,305 5,200 Supermarkets
Colombia SAS**
Sodimac Home and
Chile 4,244 -3.3% 1,201 3,828
Colombia SA* Garden Stores
Cencosud
Chile 4,615 11.2% -13 5,807 Drugstores
Colombia SAS**
Department
Droguerias y
Stores, Home
Farmacias Cruz Mexico 4,250 29.5% -27 2,864
and Garden
Verde**
Stores
Motor Vehicle
and Motor
Vehicle Parts and
Renault SAS France 2,814 -24% 0 983
Supplies
Merchant
Wholesalers
Note: *Data available until Q3 2023, **Data available for 2022.
Source: EMIS Insights
Main Players
Organizacion Terpel SA. Founded in 1968 in Bucaramanga, Santander department, the company
focuses on the acquisition, distribution and sale of hydrocarbons and their derivatives. Terpel
provides different types of fuels to the shipping, aviation and industrial sectors, as well as to
individuals through its own network of filling stations. In 2023, the company opened four new stores
in Colombia, closing the year with 14 point sales and an accumulated net profit of COP 285bn,
-14.4% y/y lower compared to 2022. In the same year, Terpel formed an alliance with the Swedish car
brand Volvo to promote the use of electric cars in Colombia. In October 2023, Terpel signed a
contract with Ecopetrol for the supply of regular gasoline, with a value of COP 6.9bn that will be
executed under a credit-based payment arrangement. In March 2024, it invested COP 4.20bn to
expand its plant in Amazonas through the installation of five horizontal tanks, boosting storage
capacity by 45% to 824,140 gallons.
Almacenes Exito SA. Established in 1950 in the department of Antioquia, the company is the leader
in the grocery retail segment in Colombia in terms of sales revenues. It operates in both wholesale
and retail trade. Almacenes Exito also offers consumer financing, insurance, marketing, travel and
tour packages, and repair services. In Colombia, it is active in shopping centre management. In
September 2023, the Exito group’s shares began to be traded on the New York Stock Exchange. In
2023, net profit stood at COP 308.2bn, 23.6% y/y higher than 2022. In January 2024, through a public
acquisition offer, Calleja Group, owner of Super Selectos (the leading supermarket chain in El
Salvador), retained 86.8% of the shares. In March 2024, the company announced that it will open two
new stores in Medellin, as part of its expansion plan.
D1 SAS. The company was established in 2009 in Medellín, Antioquia department, becoming the
first discount chain to enter the country. It has more than 17,000 employees and covers 87% of the
territory, across 28 departments and 450 municipalities. The effectiveness of D1's strategy has
enabled the company to compete with traditional and large supermarket chains, offering a portfolio
of products from over 90 private labels, under the promise of providing a better quality–price ratio
than the major chains. According to Euromonitor’s retailing report, D1 ranks second in retail in terms
of the number of outlets, and is the leader among discounters.
Supertiendas y Drogueria Olimpica SA. The company was established in 1953 as a shop offering
groceries and drugstore items. It is 100% Colombian-owned with its headquarters in Barranquilla,
Atlantico deparment and is managed by the Char Abdala family. It operates in the hypermarket
segment through the Super Almacenes Olimpica (SAO) brand, in the supermarket segment through
the Supertiendas brand, and in the drugstores segment via the Superdroguerias Olimpica and
Droguerias Olimpica brands. In December 2023, the Char family acquired the supermarket chain
Superior located in Neiva, Huila department founded in 1982. In 2022, Superior had a net profit of
COP 1.1bn, 200 employees, including both direct and indirect staff, and offered a portfolio of 15,000
products.
Jeronimo Martins Colombia SAS. The Ara brand opened its first store in Pereira, Risaralda
department, in 2013. Its private labels have been developed under a cooperation model, with a focus
on the Colombian industry. Its expansion strategy has led to a range of over 100 brands and more
than 700 products, and it enjoys high popularity, especially on the Atlantic Coast. In December 2023,
Ara opened its first franchise store in Valle del Cauca and completed 13 stores under the franchise
model. In January 2024, Scotiabank Colpatria granted a loan totalling COP 175bn to Ara, which will
be allocated to working capital, thus supporting its development and expansion.
M&A Deals 2023
Deal
Stake,
Date Target Company Deal Type Buyer Country of Buyer Value,
%
USD mn
2.5
Jul Seri Tech Inc Minority H20 Capital; United States;
(Market n/a
2023 (Seeri) stake Redwood Ventures Mexico
est.)
May 14 Pandora
Acquisition Pandora AS Denmark n/a 100
2023 jewellery stores
* NAICS code: 44
Source: EMIS DealWatch
Sources
Ara
D1 SAS
EMIS DealWatch
Euromonitor
Hydrocarbons Colombia
Infobae
Forbes
La Republica
Portafolio
Terpel
Regulatory Environment
Government Policy
Health tax
In November 2023, the health tax on ultra-processed foods and sugary drinks, included in the government’s
tax reform, came into force. According to this regulation the tax will be gradual, beginning at 10% in 2023,
15% in 2024 and reaching 20% in 2025, with beverages facing a variable tax depending on sugar content.
The newly implemented tax also impacts products high in salt and trans fats, such as cold cuts, chocolates
and puffed grain cereals, all of which have been associated with worsening cardiovascular diseases.
According to a survey performed by Dichter & Neira, a market research company, 87% of shopkeepers
believe that sales of carbonated drinks, sweets and cold cuts have been affected by healthy tax. The study
indicates that carbonated drinks and sodas were the most affected, with 57% of shopkeepers reporting a
decrease in sales with respect to 2022. This was followed by packaged chips and snacks with 53%,
candies and chocolates (39%) and cold cuts (33%).
Measures by the National Directorate of Taxes and Customs (DIAN)
Throughout 2023, the DIAN imposed 355 closure sanctions on commercial establishments nationwide due
to irregularities detected in the electronic invoicing process and the non-issuance of this document.
According to this entity, the city in which the majority of closures occurred was Bogotá, with 83
establishments. In early 2023, DIAN reported the temporary closure of the supermarket Jumbo located in
Santafe Shopping Center in northern Bogota. The measure was adopted following a visit that was made as
part of the process to monitor compliance with obligations associated with the issuance of electronic
invoices. In December 2023, DIAN closed the Exito supermarket in the Unicentro Shopping Center for three
days and in January it closed for two days the Olimpica supermarket located in the western part of Bogota
city, both for not providing electronic invoices in all transactions. According to Jaime Alberto Cabal, CEO of
the National Trade Federation of Colombia (Fenalco), this not only affected the merchants but also the
government, depriving it of revenue from VAT and taxes in those days of closure. In January 2023,
restaurants resumed charging the 8% National Consumption Tax, which was suspended during the
pandemic as a measure to help the sector.
Measures to Address Medication Shortage
In 2023, there was a shortage of medications due to various factors including increased demand, lack of
raw materials, discontinuation and ongoing procedures at the National Food and Drug Surveillance
Institute (INVIMA). In response to this shortage, in November 2023, the Administrative Tribunal of
Cundinamarca issued an urgent preliminary injunction that mandates the Ministry of Health and INVIMA to
implement a comprehensive plan addressing various aspects of the crisis. The main directives involve
guaranteeing the availability of medicines prioritised by the Ministry, speeding up the resolution of almost
28,000 pending medication registrations, and developing strategies to simplify access to essential raw
materials for medication production.
Gasoline Price Increases
In August 2022, the government of President Gustavo Petro decided to stop subsidising gasoline due to
the high costs and deficit of the Fuel Price Stabilisation Fund (FEPC), a fund created in 2007 to mitigate
fluctuations in the international price of oil, thereby preventing it from being directly passed on to
consumers. The gasoline price increased from an average of COP 9,264 in September 2022 to COP 15,164
as of December 2023, equivalent to 63% in that period. The government ultimately opted to delay the
announced increases for diesel, thus maintaining the average price of a gallon at COP 9,065.
Sources
Colombia One
El Pais
La Republica
Portafolio
Household Consumption
Overview
Amid tighter conditions for households, with high interest rates, inflation and low consumer confidence,
there was lower dynamism in consumption during 2023. Durable goods such as automobiles, appliances
and furniture, and semi-durable goods such as clothing experienced declines, while non-durable goods
such as food and services had positive variation. The high dynamism of consumption in non-alcoholic
beverages and personal care products explained the growth in non-durable goods. As reported by Raddar, a
Colombian company that analyses consumers, total household expenditure stood at COP 112.1tn in 2023,
9% y/y higher than in 2022. This expenditure was concentrated in three categories – food outside the
home (14.47%), transportation and communications (10.84%) and groceries (10.31%). In 2024, despite the
ongoing process of interest rate cuts, the monetary policy stance will remain contractionary throughout the
year and will continue to put pressure on household budgets and affect demand for durable goods.
Household Consumption
In 2023, GDP growth was 0.6% y/y explained in part by a lower consumption of households which
registered a variation of 1.1% y/y compared to 10.7% y/y growth in 2022. This deceleration was mainly
explained by a decrease of -10.3% y/y in durable goods and -5.6% y/y in semi-durable goods, while non-
durable goods increased 1.4% y/y and services rose 3.1% y/y. By category, the highest drop was observed
in clothing and footwear (-4.3% y/y), followed by restaurants and hotels (-3.7% y/y), and furniture,
household items and ordinary household conservation (-3.1% y/y). According Raddar, the lower dynamism
of consumption, in addition to responding to a high inflation and more stringent credit conditions,
corresponds to an expected adjustment behaviour after the expansion in 2022. Moreover, households have
been spending a significant portion of its budget in food and housing, primarily linked to the high inflation
of these categories. Although the food basket has experienced a significant deceleration, prices remain
high compared to previous years, prompting households to continue allocating a large amount of money to
this category. For housing, the increase in public service prices has also led households to allocate more
money to this basket.
Household Consumption by Category of Goods, y/y change %, 2023
3.07
1.41
2023
-5.60
-10.30
-12 -8 -4 0 4
%
Services Non-Durable Goods Semi-Durable Goods Durable Goods
Source: DANE
Household Consumption by Type of Goods, y/y change %, 2023
5.24
3.18
2023 2.23
-0.14 0.42 0.93
-3.06
-4.26 -3.74
-6 -3 0 3 6
%
Alcoholic Beverages and Tobacco
Health
Miscellaneous Goods and Services
Recreation and Culture
Housing, Water, Electricity, Gas and Other Fuels
Food and Non Alcoholic Beverages
Information and Communication
Ed ti
1/2
Source: DANE
Big Data Consumption Index
According to the Spanish bank BBVA's Big Data Consumption Index, consumption in Colombia remained
stable in the second semester of 2023. As of December 2023, real consumption rose by 5.1% y/y, lower
than the rebound observed in November (7.3% y/y). Household spending on goods improved at the end of
2023 with an increase of 5.4% y/y, following a period of low dynamism, while services moderated their
growth with a variation of 4.6% y/y. In the same month, food spending rebounded by 6.6% y/y, following a
decrease in October. There was also a notable growth in spending on beverages (22.3% y/y). Spending on
clothing decelerated in December from elevated levels (2.9% y/y), while spending on furniture and the
home further contracted (-12.4% y/y). Another sector that maintained a good performance was
entertainment with a 23.5% y/y growth, while restaurants experienced a negative variation of 0.3% y/y.
Big Data Consumption Index by Category, y/y change %
23.50
9.60
6.60
12/2023 2.90
-0.30
-12.40
-16.50
-30 -15 0 15 30
%
Recreation and Culture Alcoholic Beverages Education
Food Health Clothing
Transport Restaurants and Hotels Others
Furniture and Household Items Information and Communication
Source: BBVA
Inflation Analysis
Total inflation decreased from 13.1% y/y in December 2022 to 9.3% y/y in December 2023, largely favoured
by the reduction in food inflation, which fell from 22.8% y/y to 5% y/y in the same period due to lower prices
of agricultural inputs. This decline was also attributed to subsegments such as edible oils, dried
vegetables, and corn and its derivatives, which experienced variations of -7.7% y/y, -10.4% y/y and -10.9%
y/y, respectively. By contrast, transport prices had the highest increase (15.4% y/y) due to the rise in the
price of gasoline. Restaurants and hotels had the second highest growth (13.2% y/y), mainly explained by
the contribution of meals prepared outside the home (14.8% y/y). Another category that had an important
contribution to total inflation was housing, water, electricity, gas and other fuels with 2.8pp and a variation
of 9.3% y/y, attributed to the increase in electricity prices (15.8% y/y) and rental prices (7.5% y/y). In
February 2024, total inflation stood at 7.7% y/y, mainly explained by the regulated and services baskets
pressured by indexation factors, the rise in electricity prices and persistent strength in demand for certain
services.
Inflation by type of goods
15.43
13.22
11.95
10.08
12/2023 9.26
7.10
5.23
0.12
0 5 10 15 20
%
Transport Restaurants and Hotels
Alcoholic Beverages and Tobacco Education
Miscellaneous Goods and Services Health
Public Services Furniture, Household Items
Recreation and Culture Clothing and Footwear
Food and Non Alcoholic Beverages Information and Communication
Sources
Bancolombia
BBVA
Corficolombiana
DANE
Raddar
Retail Trade
Overview
In December 2023, the total retail trade index decreased by 4.5% y/y in real terms, reversing the
improvement seen in November (-3.3% y/y) and surprising analyst consensus, which expected a decline of
2.3% y/y. This result was in line with the survey conducted by the National Trade Federation of Colombia
(Fenalco) in the same month in which sales from respondents reached their lowest level in the past 23
years. As of December 2023, sales of durable and semi-durable goods such as vehicles, motorcycles,
furniture, appliances and computers were the most affected. However, according to the Financial Stability
Report of the Central Bank of Colombia, the financial position of households has improved as high interest
rates have encouraged savings and debt reduction. This, amid a process of disinflation and the upward
trend observed in the consumer confidence index, could stimulate household consumption during 2024,
particularly in the second semester of the year. By contrast, the deterioration of the labour market is
expected to reduce household income and could therefore restrain the potential improvement of the
sector.
Retail Trade by Departments
When analysing by department, Bogota exhibited the highest decrease in the retail trade index (6.8% y/y in
real terms) in 2023, followed by Valle del Cauca (-6.1% y/y) and Cundinamarca (-4.8%). The lower
dynamism of retail in these departments was mainly explained by motor vehicles and motorcycles, which
exhibited a decline of 14.8% y/y, 20.2% y/y and 22.2% y/y, respectively. In Bogotá and Valle del Cauca,
another sector that accounted for this contraction is textiles, and apparel and footwear, with a decrease of
5.7% y/y and 6.8% y/y, respectively. In Antioquia, Atlántico and Santander, the culture and entertainment
segment was one of the most affected with annual variations of -12.2%, y/y, -12.8% y/y and -31.9% y/y,
respectively.
Real Retail Trade Index by Departments, 2019=100, y/y change, %
-2
-2.81
-3.47 -3.65
-4
%
-4.78 -4.81
-6
-6.09
-6.79
-8
2023
Santander Antioquia Other regions Atlántico

Cundinamarca Valle del Cauca Bogota
Source: DANE
Food and Beverages Retail
In December 2023, the food retail trade index rose by 0.2% y/y in real terms, from a contraction of 0.3% y/y
in the same month of 2022. Similarly, the beverage retail trade index increased from 5.7% in December
2022 to 12.4% in December 2023. This advancement was mainly favoured by the accelerated correction in
food inflation that went down from 24.1% y/y in January 2023 to 1.9% y/y in February 2024. Perishable
foods inflation continues to exhibit a downward trend, reaching a new minimum of -5.32% y/y during
February. The highest decrease was observed in products such as banana (-33.4% y/y), onion (-32.4% y/y)
and yuca (25.7% y/y), among others. Moreover, processed food also decreased despite the implementation
of the healthy tax in November 2023, which imposes an initial tariff of 10% on ultra-processed foods and
sugary drinks and will rise to 20% by 2025.
Real Retail Trade Index Food and Beverages, 2019=100, y/y change, %
30
24.42
20
16.94
14.55 14.16
12.19 12.46 12.44
9.74 10.24 10.11
10
%
8.64
5.65 5.65 6.28
3.27
1.93
-0.23 0.30 0.10 -0.20 0.60 0.23
0 -0.52 -0.45 -1.24
-1.56
-2.51 -2.82 -2.70
-3.43
-10
01/2023 03/2023 05/2023 07/2023 09/2023 11/2023 01/2024
Food Non-alcoholic Beverages
Source: DANE
Textiles, Apparel and Footwear Retail
The clothing and textile retail trade index contracted by 4.2% y/y in real terms in December 2023, from a
contraction of 0.1% y/y as of December 2022. The footwear, leather and leather derivatives retail trade
index paused from a growth of 7.2% y/y in December 2022 to -0.5% y/y at end 2023. This segment is
usually one of the most affected during economic decelerations as consumers tend to be cautious and
spend less on non-essential products. As reported by Raddar in its fashion report in January 2024, in the
fourth quarter of 2023, spending on fashion amounted to COP 8.9tn, resulting in a growth of 0.24% y/y,
mainly affected by high inflation. November had the lowest contraction due to “Black Friday” and “Cyber
Monday” discounts that encouraged early purchases of Christmas gifts. According to leaders in the
segment, the tariff of 40% on imported textiles from countries without trade agreements, such as China
and Taiwan, has not revitalised the domestic textile industry.
Real Retail Trade Index Textiles, Apparel and Footwear, 2019=100, y/y change, %
20
13.31
10
8.19 8.23
1.79
-0.08 0.48 -0.38
0 -0.75 -0.52
%
-1.66
-3.82 -3.52 -3.05
-4.21 -4.63
-5.23 -6.04 -5.74 -5.85
-6.67 -6.91
-10.28 -10.46 -9.80 -9.85
-10
-12.24 -12.01
-15.15
-16.85
-20
01/2023 03/2023 05/2023 07/2023 09/2023 11/2023 01/2024
Footwear, Leather and Leather Derivatives Clothing and Textiles
Source: DANE
Pharmaceuticals, Cosmetics and Perfumery Retail
The pharmaceutical and medical products retail trade index declined by 4.4% y/y in real terms in December
2023. According to the National Business Association of Colombia (ANDI), patented medications in 2023
represented 41% of total sales, generic medications 42%, and over-the-counter medications the remaining
17%. The pharmaceutical sector has 306 companies, of which 71% are focused on medication
commercialisation activities and 29% on production. Moreover, locally produced medications account for
46%, while imported medications constitute 54%. 2023 was also characterised by a shortage of
medications due an increase in demand, ongoing procedures at the National Food and Drug Surveillance
Institute (INVIMA), difficulties in acquiring raw materials and lack of interest from the industry in
commercialising certain low-profitability products, among others. By contrast, the personal care, cosmetic
and perfume retail trade index expanded by 3.1% y/y in real terms compared to 2022. It is estimated that
this sector contributes around 3% of total GDP and generates approximately 500,000 jobs in Colombia.
According to ANDI, the sector was expected to reach COP 11.3bn in terms of sales in 2023, above the
figure of COP 10.5bn of 2022. Premium products have gained in relevance among consumers, as well as
environmentally friendly ones.
Real Retail Trade Index Pharmaceuticals, Cosmetics and Perfumery, 2019=100, y/y
change, %
10
7.54
8.44 6.70 6.15 6.71
5.66
5.30 5.05 4.33 3.87 3.61
2.24
1.05 1.21
0 -0.48
-1.75 -1.49 -1.49
-3.01 -3.29 -4.05
-4.38 -4.31
-6.20 -5.87 -5.80
-8.68 -7.92
-10
%
-17.67
-20
-30
01/2023 03/2023 05/2023 07/2023 09/2023 11/2023 01/2024
Pharmaceutical and Medical Products Personal Care, Cosmetics and Perfume
Source: DANE
Motor Vehicles, Motorcycles and Auto Parts Retail
The vehicles segment was one of the most affected during 2023 as its retail trade index contracted by
6.3% y/y in real terms. The retail index of auto parts also decreased by 8.6% y/y as of December 2023.
According to Andemos, the most representative association of the automotive sector in Colombia, despite
the rise in sales of new vehicles (including motorcycles) during November and December, 186,826 new
cars were sold in 2023, representing a decline of 28.9% y/y. The premium subsegment had a contraction of
17.1% y/y with 7,453 new vehicles sold. The month with the lowest figure was July with 13,146 new
vehicles sold, 43.5% y/y lower than in 2022. With respect to brands, Renault had the highest sales with
26,417 vehicles, followed by Toyota (25,940), Chevrolet (23,838), Mazda (17,583) and Kia (15,746).
Moreover, as reported by the ANDI, in 2023 the sales of electric vehicles rose by 12% y/y with respect to
2022, while sales of hybrid vehicles increased by 13% y/y in the same period.
Real Retail Trade Index Motor Vehicles, Motorcycles and Auto Parts Retail,
2019=100, y/y change, %
12
8.58
4.81
3.21
0 -0.30 -0.52
-2.83
-4.17 -4.14
-6.31 -6.46
-7.68 -7.54 -8.16 -7.59
-9.93 -9.64 -9.04
-10.84 -10.92
-12
%
-14.34
-17.24
-19.29
-24 -25.36 -26.13

-28.41
-29.84
-32.42
-36
01/2023 03/2023 05/2023 07/2023 09/2023 11/2023 01/2024
Motor Vehicles and Motorcycles for Household Use Vehicles Parts and Accessories
Source: DANE
Home Appliances and Home Furnishings Retail
The home appliances and furnishings retail trade index decreased by 1.4% y/y in real terms at end-2023.
According to Fedesarrollo’s consumer confidence index, desire to purchase furniture and household
appliances continued to be negative, standing at -37.4% compared to -51.6% in December 2022. When
analysed by cities, Bucaramanga had the lowest willingness to purchase this type of goods with a value of
-44.8%, followed by Bogota (42.1%) and Medellin (41.4%). In the same year, two new companies entered
the market, which is currently dominated by Homecenter and Falabella, part of Chilean group Sodimac. The
first is an American furniture company, Ashley Furniture, which expects to invest USD 10mn in the next five
years and plans to generate over 300 direct jobs in Colombia. The other is Ikea, the Swedish multinational
conglomerate that sells furniture, which opened a store in Bogota and expects to open two more in 2024.
Real Retail Trade Index Home Appliances and Home Furnishings, 2019=100, y/y
change, %
15
7.76
4.97 5.50 5.72
2.46
0 -2.73 -1.77 -1.41
-4.37 -3.05 -3.95
-10.21
-15
%
-24.17
-30 -31.01
-37.61
-45
01/2023 03/2023 05/2023 07/2023 09/2023 11/2023 01/2024
Appliances and Home Furnishings
Source: DANE
Sources
Banco de Bogota
Bancolombia
DANE
Infobae
La Republica
Portafolio
Semana
Valoranalitik
Retail Channels
Overview
In 2023, Colombia’s economy deepened its deceleration process as GDP grew by just 0.6% y/y. The retail
sector was one of the most affected, decreasing by 2.8% y/y as consumers reduced expenditures,
especially of durable (-10.3% y/y) and semi-durable goods (-5.6 y/y). By contrast, in 2022, Colombia’s GDP
grew by 7.5% y/y in real terms, mainly supported by household consumption. This was also reflected in the
retail sphere, and specifically online sales have expanded at a fast pace since the pandemic. Shopping
centres exhibited a positive result with total sales of COP 42.8tn, 5.5% y/y higher than 2021. The rise of
inflation and an innovative proposal, based on price over experience, have driven the growth of discounter
stores, which compete against supermarkets and small local grocers.
Supermarkets
Euromonitor, an independent provider of strategic market research, has published a retail report for
Colombia, which shows that the importance of hypermarkets is declining as consumers prefer small
formats or specialist and niched offers. Therefore, sector players are focusing on the establishment of
small supermarkets like Carulla Freshmarket, Smart Market and Exito Wow. This type of supermarket has
proven to be more profitable, offering a variety of options, ranging from healthier to sustainable products.
Another format on the rise is small supermarket chains that are active regionally, such as Cañaveral in Cali,
Euro in Medellin and Zapatoca in Bogota. Supermarkets have also expanded their online presence through
different digital formats such as digital catalogues, marketplaces, last-mile and click-and-collect.
In 2022 (the latest data available from Euromonitor as of April 2024), sales of the supermarket segment
(including supermarkets, hypermarkets, discount stores, convenience stores, small local grocers and other
grocers) stood at COP 170.1tn, declining by 3.4% y/y in real terms due to high inflation. This dynamic was
mainly explained by a decline in sales of small local grocers (6.4% y/y in real terms) and hypermarkets
(4.4% y/y), while convenience and discount stores exhibited growth of 4.7% y/y and 4.6% y/y, respectively.
The latter have succeeded in creating differentiation by providing products that were previously
inaccessible to all budgets.
According to a report from NielsenlQ, a market research and consumer intelligence company, in 2023, due
to inflationary pressures, consumers prioritised essential items. Products with the highest sales included
rice (39.8% y/y), coffee (27.1% y/y) and milk (22.4% y/y).
Supermarket Sub-channels Sales,
Supermarket Sales Value
2022
200,000 4
3.47 0.45 %
170,081.70
159,875.90 9.84 %
150,000 144,617.70 2 10.49 %
1.18
0.70 46.93 %
COP bn
13.47 %
100,000 0
%
50,000 -2 18.83 %
-3.44 Small Local Grocers

Other Grocers
0 -4
Discount Store Sub-Channel
2018 2020 2022
Supermarket Sub-Channel
Total Supermarkets Sales, COP bn, current prices Hypermarket Sub-Channel
y/y change, constant Dec 2018 prices Convenience Store Sub-Channel
Source: Euromonitor Source: Euromonitor
Discounter Stores
Discount retailers have become increasingly popular among Colombian consumers due to their
affordability and a wide range of product offerings. During 2017-2022, total sales of these stores grew by a
CAGR of 21.8%. As of 2022, Koba Colombia’s D1, which was created in 2009, remained the bestselling
retail brand in the country. D1 stores attracted customers with a straightforward yet efficient service
offering, competitive prices and a diverse range of products. Jerónimo Martins Colombia’s Ara brand is
another discounter that has expanded with increasing popularity on the Atlantic Coast. As a result of its
expansion strategy, it has a selection of more than 100 brands and 700 products, with 95% being
domestically produced. In December 2023, a new discounter entered the market, Isimo, from the same
owners of supermarket Olimpica, which has a significant presence on the Atlantic Coast. Furthermore, due
to factors like proximity and convenience, the advancement of online offerings through major discount
brands hasn't required as much aggressiveness as in other retail channels.
Discount Store Sales Value
32,000 32
28.19 28.94
26.98
24,000 22,915.60 24
22.29
19,875.80
COP bn
16,000 15,703.80 16
%
12,062.60
9,037.10
8,000 8
4.64
0 0
2018 2019 2020 2021 2022
Discount Store Sub-Channel Sales, COP bn, current prices y/y change, constant Dec 2018 prices
Source: Euromonitor
Specialist and department stores
During 2017-2022, total sales of specialist stores grew by a mere 0.9% CAGR, according to EMIS Insights
estimates based on Euromonitor. Retailers ended 2022 on a weak note with a negative growth in real terms
of 2% y/y, mainly accounted for by home products (-5.9% y/y), leisure and personal goods (-1.8% y/y) and
electronics and appliances (-1.1% y/y). By contrast, health and beauty products increased by 7.7% y/y in
real terms and general merchandise by 0.4% y/y. With respect to the latter, the expansion is due to the
arrival of different brands with a modern format such as Dollarcity, Miniso and Yoy. According to the
Colombian Federation of Commerce (FENALCO), although the retail sector made an effort to boost its
sales in 2023, the impact of the tax reform, the elimination of non-VAT days, the evident economic
slowdown and the uncertainty surrounding ongoing reforms, among other factors, significantly affected
their dynamic. Moreover, the Christmas season failed to improve average sales and ended up confirming
the challenging year the sector experienced. Consumers were cautious with their expenses, especially in
categories associated with durable and semi-durable goods such as vehicles, motorcycles, furniture,
appliances and computers. A survey by FENALCO investigated the degree of budget compliance and 71%
of respondents indicated that sales objectives were not met.
Specialist Store Sales Specialist Store Sub-channels Sales,
2022
120,000 20
111,764.40
103,528.90 4.44 %
96,886.30
89,545.20
4.91 %
90,000 85,373.40 10 33.51 %
10.17 %
4.52
COP bn
1.16 13.61 %
60,000 0
%
-2.02
15.31 % 18.05 %
30,000 -10
-14.05 Home and Gardening
Apparel and Footwear
Electronics and Appliances
0 -20
Health and Beauty
2018 2020 2022
Others
Total Specialised Store Sales, COP bn, current p… Leisure and Personal Goods
y/y change, constant Dec 2018 prices General Merchandise
Source: Euromonitor Source: Euromonitor
Shopping Centres
According to the latest available report from the Association of Shopping Centres (ACECOLOMBIA), in
2022, Colombia had 261 shopping centres, three more than in 2021. These were Parque Alegra in
Barranquilla, Centro de Eventos Arena in Bogota and Plaza 90 in Bolivar. In 2023, the inauguration of two
new shopping centres was expected – the Unico Outlet in Bucaramanga and the Gran Manzana in
Cartagena. The first will generate 1,500 jobs, both directly and indirectly, and the second has a gross
leasable area (GLA) of 25,900 square metres, being the third largest in Cartagena and in the department of
Bolivar. The sector has experienced a slowdown since 2019 with just two shopping centres inaugurated
per year. The decline becomes more evident when considering the GLA. In 2018, 403,925 square metres
were built while in 2022 the GLA was just 64,000, even lower than in the first year of the pandemic.
According to Raddar, sales from shopping centres in 2022 reached COP 43.8tn, with a growth of 5.5% y/y
compared to 2021 (COP 41.5tn). However, they were 8.1% below the figures of 2019, the best year in the
industry's history, when a peak of COP 47.7tn was reached. As reported by Mall & Retail, shopping centres
in Bogota had an outstanding performance in 2022. The 20 centres analysed registered a revenue growth
of 25.7% y/y and Unicentro had the highest revenue with COP 48.8bn.
Number of Shopping Centres, year- Number of Shopping Centres by Size,
end 2022
320 8
18.39 %
255.00 257.00 259.00 261.00
247.00
240 6
Unit
160 4
%
3.24 55.56 %
26.05 %
80 2
0.78 0.78 0.77
0 0
Small (5,000-19,999 m2 GLA)
2018 2020 2022 Medium Size (20,000-39,999 m2 GLA)
Number of Shopping Centres Large (40,000 m2 or larger GLA)
y/y change Source: ACECOLOMBIA
S ACECOLOMBIA
Sources
ACECOLOMBIA
Euromonitor
Fenalco
La Republica
Portafolio
Online Retail
Overview
The return to in-person activities following the pandemic has led to a decrease in digital channels, but even
with this trend, the participation of e-commerce continues to be higher than pre-2020 levels. Moreover,
logistics infrastructure has continued to improve, with several large players investing heavily in new
distribution centres in order to improve delivery times. According to Maria Fernanda Quiñones, CEO of the
Colombian Chamber of E-Commerce, the resilience and demonstrated potential of e-commerce to cope
with various socioeconomic phenomena, both nationally and internationally, has generated expectations of
growth close to 17.9% in 2024. In terms of online transactions, 2023 was also a good year, with e-
commerce sales increasing by 8.4% y/y and the number of transactions rising by 11.5% y/y. The second
semester – particularly the months of October, November and December – exhibited positive behaviour,
largely explained by the year-end season and the occurrence of discount events such as Black Friday, Hot
Sale, and Mercaweek.
Online Retail
The retail sector has benefited from the expansion of e-commerce. According to the National
Administrative Department of Statistics (DANE), as of December 2023, sales made through e-commerce
accounted for 2.2% of total sales. This percentage has increased in the last five years from a share of 1.2%
as of December 2019. Moreover, sales registered an 8.4% y/y growth as of end-2023. As reported by the
Colombian Chamber of E-Commerce (CCCE), the number of online transactions stood at 370.5mn in 2023,
11.5% y/y higher with respect to 2022. Financial services (21.7%), technology (15%) and other services
(12.8%) emerged as the top three categories with more transactions in 2023. Moreover, credit and debit
cards are the leading payment methods.
Share of E-Commerce in Total Retail E-Commerce Sales, y/y change, %
Sales, %
120
105.45
8
7.64 78.02
6.73
60
6 5.90
5.49
15.02 15.48
9.25 8.36
4.26 -2.64 0.33 3.86 -4.25
0
%
4 -11.58
%
3.57 -16.91
3.28 3.16 3.16 3.11 -34.66
2.69 2.73 -43.82
2.23 2.22 2.21 2.08
2 1.89 -60
1.191.11
0.99
0 -120
01/2020 01/2022 01/2022 01/2023
Share in Total Retail Sales y/y change, %
Online Retail by sector
When analysing by sub-sector, travel and tourism had the highest share (33.7%) by total value of
transactions made through e-commerce in 2023, as reported by GRIPS Intelligence, a company that
produces insights about the online retail sector globally. This was followed by computers and technology
with a 16.2% share, shopping with 14.8% and lifestyle with 14.1%. In terms of annual variation, the highest
increase was observed in the home and garden category, rising from USD 136,568 to USD 2.4mn, followed
by finance from USD 51,602 to USD 432,193. Regarding electronic devices, most e-commerce transactions
were made in order to buy desktop computers (72.9%) followed by mobiles (26.7%).
E-Commerce Transactions by Category
0.55 % 4.10 %
0.38 % 0.88 %
34.85 % 16.19 %
13.29 %
1.64 % 5.45 %
14.51 % 7.54 %
Arts and Entertainment Business and Consumer Services

Computers Electronics and Technology E-Commerce and Shopping
Finance Games
Health Home and Garden
(DC)Hobbies and Leisure Lifestyle
Jobs and Career Pets and Animals
Science and Education Travel and Tourism
Sports Vehicles
Source: Grips
E-Commerce Transactions by Electronic Device
0.38 %
26.23 %
73.39 %
Desktop Mobile Tablet
Source: Grips
Sources
Colombian Chamber of E-Commerce
DANE
Forbes
Grips
Abbreviations
Abbreviations
ACECOLOMBIA Colombian Association of Shopping Centres
ANDEMOS National Association of Sustainable Mobility
ANDI National Business Association of Colombia
CCCE Colombian Chamber of E-Commerce
COP Colombian Peso
DANE National Administrative Department of Statistics
DIAN National Directorate of Taxes and Customs
Foundation for Superior Education and

FEDESARROLLO
Development
FENALCO Colombian Federation of Commerce
FEPC Fuel Price Stabilisation Fund

INVIMA National Food and Drug Surveillance Institute
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EMIS Insights - Colombia Consumer Goods and Retail Sector Report H1 2024

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EMIS Insights - Colombia Consumer Goods and Retail Sector Report H1 2024

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An EMIS Insights Industry Report

Colombia Consumer Goods

Main Economic Indicators

Name 2019 2020 2021 2022 2023

Total Population, mn, year-end 49.40 50.37 51.05 51.61

Gross Domestic Product (GDP) 1,060,068.00 998,471.00 1,192,634.00 1,469,791.00 1,572,658.36

GDP per Capita: USD 6,436.51 5,304.29 6,182.71 6,624.17

Unemployment Rate 9.95 13.91 11.10 10.27 10.01

Monetary Policy Rate, year-end, % 4.25 1.75 3.00 12.00 13.00

Exchange Rate USD/COP, year-end 3,277.14 3,432.50 3,981.16 4,810.20 3,822.05

Household Final Consumption Expenditure, % of … 70.52 73.93 75.11 77.53 80.15

Total FDI Inflow, USD mn 13,989.15 7,458.62 9,561.34 17,182.52 17,446.18

Source: Central Bank of Colombia, DANE, Fedesarrollo, IMF, World Bank

Name 2019 2020 2021 2022 2023

Food and Beverage Stores Real Sales, y/y change, %

Source: DANE, Andemos

Consumer Confidence Index Consumer Expectations Index

Source: Fedesarrollo Source: Fedesarrollo

Source: Financial Superintendence of Colombia Source: Financial Superintendence of Colombia

Source: DANE Source: IMF

Foreign Direct Investment

Source: Banco de la Republica Source: Banco de la Republica

Employment Index in Retail Trade, 2019=100, y/y change, %

Employment in New Motor Vehicles Employment in Non-specialist and

2.94 4.17 4.36

Source: DANE Source: DANE

Source: DANE Source: DANE

Financial Performance of Retail Companies, 2023

Operating Operating Net Total

Source: EMIS Insights

M&A Deals 2023

Source: EMIS DealWatch

Measures by the National Directorate of Taxes and Customs (DIAN)

Measures to Address Medication Shortage

Gasoline Price Increases

Household Consumption by Type of Goods, y/y change %, 2023

Big Data Consumption Index

Big Data Consumption Index by Category, y/y change %

Retail Trade by Departments

Santander Antioquia Other regions Atlántico

Food and Beverages Retail

Food Non-alcoholic Beverages

Textiles, Apparel and Footwear Retail

Footwear, Leather and Leather Derivatives Clothing and Textiles

Pharmaceuticals, Cosmetics and Perfumery Retail

Pharmaceutical and Medical Products Personal Care, Cosmetics and Perfume

Motor Vehicles, Motorcycles and Auto Parts Retail

-24 -25.36 -26.13

Home Appliances and Home Furnishings Retail

Appliances and Home Furnishings

-3.44 Small Local Grocers

Source: Euromonitor Source: Euromonitor

Specialist and department stores

Source: Euromonitor Source: Euromonitor

0.78 0.78 0.77

Share in Total Retail Sales y/y change, %

Source: DANE Source: DANE

Online Retail by sector

Arts and Entertainment Business and Consumer Services

E-Commerce Transactions by Electronic Device

Desktop Mobile Tablet

ACECOLOMBIA Colombian Association of Shopping Centres

ANDEMOS National Association of Sustainable Mobility

ANDI National Business Association of Colombia