The retail industry faces some of the most important challenges of any industry worldwide, not only because of the technological changes that force retailers to adapt to new competitors and lower barriers of entry, but also because of the constantly shifting needs and preferences of the consumer. In order to be always at the forefront of the industry and to ensure sustainable profitability, it is very clear that the investments required in human capital and technology are becoming increasingly important, highlighting the need for leadership and economies of scale.
These challenges have resulted in a massive consolidation of the retail landscape during the last decade, where those players with leadership positions have recognized the need for scale and for constructing panamerican networks in each sub sector of the industry. The most successful retailers are those that have recognized retail’s unwillingness to “travel well” across borders and have therefore designed their growth strategies around Mergers & Acquisitions in order to be able to acquire or merge with those players with strong brands, business models and leadership positions in the local markets.
In most retail categories, Capital’s team has experience of over US$1.7B of Enterprise Value in completed transactions, across 22 countries in Latin America, having worked in several sub-sectors like:
- Appliances and electronics, with or without consumer finance.
- Retail with consumer finance.
- International franchises.
- Footwear retailers.
- Convenience stores.
- Department stores.
- Eyewear retailers.
- Hardware stores.
We place at our clients’ disposal the accumulated expertise that we have acquired in this sector, in order to guarantee the successful implementation of their transaction strategy. At the same time, with our retail practice, we have worked with some of the most important groups of the region, granting us important access to those retailers and industry players who are leading the charge in consolidating their industry.