BMI View: Consumer confidence in Colombia remains dented as a result of the impact of lower commodity prices and the weak peso. Recent increases in both inflation and unemployment rates will do nothing to improve consumer confidence, further dampening household spending on non-essentials and larger retail purchases. ...BMI View: Consumer confidence in Colombia remains dented as a result of the impact of lower commodity prices and the weak peso. Recent increases in both inflation and unemployment rates will do nothing to improve consumer confidence, further dampening household spending on non-essentials and larger retail purchases. With any significant improvements in the macroeconomic environment looking less likely this year, the strong growth potential of the Colombian economy will remain muted. ...
...The informal sector, comprised of myriad small, independent retailers, still dominates less urban areas, as low-income consumers remain unexposed to modern-format retailers Poverty remains a significant weakness, as around -- of the households remain impoverished, even as the economy has experienced strong growth Quality physical infrastructure remains lacking, as inadequate roads and railroad networks significantly increase business operation costs for retailers Cash continues to dominate as the preferred payment option, limiting growth potential for e-commerce retailers and lessening the impact of increasing credit availability ...
...Years of economically supportive policy, including the US-Colombia Free Trade Agreement have brought substantial foreign direct investment in the retail sector, which has led to strong representation by regional and global players Colombia is the third largest Latin American country by population and the fourth largest by GDP Colombia currently has one of the highest internet penetration rates in all of Latin America, at over -- of the population Disposable incomes are rising, with the portion of households expected to be earning above the USD--,--- mark reaching almost --.- by the end of ---- ...
...Colombia-based retailer Home Sentry opened its --th department store in April ----, in Cali, at an investment of COP--,---mn. Chilean retailer Falabella, announced recently that it aims to triple its sales and double the number of its stores in Colombia by ---- through an investment programme totalling USD---mn. ...Colombia-based retailer Home Sentry opened its --th department store in April ----, in Cali, at an investment of COP--,---mn. Chilean retailer Falabella, announced recently that it aims to triple its sales and double the number of its stores in Colombia by ---- through an investment programme totalling USD---mn. We have revised up our end----- policy rate forecast to -.-- from -.-- previously in light of the latest rate decision by the central bank, and we no longer expect interest rate cuts to start later this year (see Hiking Cycle Nearing Its Peak , June -). ...Chilean retailer Falabella, announced recently that it aims to triple its sales and double the number of its stores in Colombia by ---- through an investment programme totalling USD---mn. We have revised up our end----- policy rate forecast to -.-- from -.-- previously in light of the latest rate decision by the central bank, and we no longer expect interest rate cuts to start later this year (see Hiking Cycle Nearing Its Peak , June -).
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