Industry & Retail

In 2017 Peru was struck by the El Niño Costero floods, and some industrial segments were forced to stop production as a result. Despite that, significant growth in non-primary manufacturing segments – such as food products, paper and cardboard, and construction equipment and machinery – helped the sector record a relatively positive outcome for the year. Moreover, driven by the expansion of shopping malls, low prices at supermarkets and pharmacies, and a growing middle class, the retail industry grew by 4.3% in 2017 and is projected by the Lima Chamber of Commerce and the Retail Labour Union to grow by up to 6% in 2018. Furthermore, the 2017 Global Retail Development Index claimed that Peru’s retail industry recorded the largest growth in Latin America, despite an economic slowdown. Peru ranked 9th out of 30 countries based on market attractiveness, country and business risk, market saturation and time pressure. This chapter includes interviews with Rafael Álvarez, CEO, Backus; and Mario Campodónico, CEO, Supermarket Division, Cencosud Perú.