Despite less dynamic sales than usual for Uruguayan border shop operators in 2014, several are still going ahead with new stores and expansion plans – irrespective of whether Brazilian operators begin retail operations on the Brazilian side on July 1.

 

Carlos Loaiza, Secretary General of the Uruguayan Chamber of Free Shops told TRBusiness: “2014 was a strange year, with the duty free business on the Uruguay-Brazil border suffering from the slowdown in the Brazilian economy.”

 

He said the behaviour of the Brazilian consumer is changing and those operators who have adapted ‘have probably done better than they originally anticipated.’

 

Of those retailers who have reported planned expansions, Enrique Urioste, President and CEO of Neutral Duty Free said the retailer opened a new 1,800sq m store in Rivera last September, replacing a smaller facility.

 

 

MELANCIA MALL TO OPEN IN JULY

He also adds that a new 4,000sq m store will open in Rivera later this year, as work at Neutral’s new Melancia Mall store continues on schedule for its grand opening this July.

 

Andres Mendelsohn, General Manager of DFA Uruguay said his operation expects to see the benefits of renovations carried out in its Rivera operation last December.

 

While DFA Uruguay is also opening a new chain selling only keenly-priced products at the end of March, with its first ‘Macanudo by DFA’ store debut in Bella Union.

 

Building work is also commencing at DFA Uruguay’s biggest project now that it has received the last permit allowing it to commence work on the $40m Rio Branco mall. [A major feature article on this appears in the March issue of TRBusiness-Ed].