Blog BanRep | How have Hard-Discount Stores transformed local Economies?
This new blog post addresses the question of whether the entry of these stores displaces other local businesses and shows that they generate economic benefits through linkages with the local productive sector.
Publication Date:
Tuesday, 19 August 2025
15:10
Hard-discount stores are a retail innovation that has brought significant changes to Colombia’s commercial landscape. Operating under well-known brands such as D1 and ARA, these stores are larger than neighborhood shops, but smaller than traditional supermarkets. They offer a limited assortment—mainly own-brand products—at comparatively lower prices. In addition to competing with traditional supermarkets, they also compete with neighborhood stores, as their business model allows rapid expansion in residential and urban areas where large retail chains typically do not operate.
