Retail in Latin America: Advantages, Characteristics, and the Key Role of System Integration

5.6.2025

Ecommerce
Growth

In an increasingly competitive, dynamic, and digital market, retail has become one of the most relevant sectors for the Latin American economy.

From large multinational chains to small local businesses, retail encompasses a wide variety of formats, channels, and strategies that directly impact the daily lives of millions of consumers.

But what are the real advantages of retail? What benefits does this model offer to both companies and consumers? What is e-retail, what defines retail in Latin America, and what role does system integration play today in enabling efficient operations and frictionless growth?

In this article, we’ll help you understand why retail remains a key economic driver in the region—and how Weavee can become your strategic ally for scalable growth.

What Is Retail and What Are Its Advantages?

Retail (or retail commerce) refers to the sale of goods or services directly to the end consumer, through physical stores, digital channels, or a combination of both. In other words, it's the last link in the supply chain and the direct point of contact with customers.

The advantages of the retail model are numerous:

  • Accessibility: Retail brings products closer to consumers—whether through neighborhood stores, supermarkets, marketplaces, or e-commerce platforms.
  • Variety and availability: It offers a wide assortment of products, brands, prices, and purchasing options, tailored to customers’ needs and preferences.
  • Speed and convenience: It enables immediate purchases or fast delivery, both in physical stores and through digital platforms integrated with logistics systems.
  • Job creation: Retail is one of the sectors that generates the most employment in Latin America—across stores, logistics, technology, customer service, and marketing.
  • Economic impact: Retail accounts for a significant share of GDP in many Latin American countries and is essential for the growth of SMEs and local suppliers.
  • Adaptability: It has the ability to quickly respond to changes in demand, consumer trends, and new channels such as social commerce or mobile apps.
  • Customer proximity: Retail has the closest relationship with the consumer, deeply understanding habits, preferences, and behaviors—which strategically positions it to deliver personalized experiences.

What are the key characteristics of retail in Latin America?

Retail in Latin America has unique traits that set it apart from other markets:

Fragmentation

Large international chains coexist with an extensive network of SMEs and local businesses. This diversity creates a broad ecosystem, but also brings challenges in terms of standardization and technological integration.

E-commerce growth

The region leads global e-commerce growth, with a projected compound annual growth rate of 11% between 2024 and 2028. In countries like Mexico and Brazil, e-commerce accounts for more than 50% of total retail growth.

High smartphone usage

With a penetration rate of 72% in 2023 and a projected 85% by 2028, mobile devices are the main digital access channel—driving the development of m-commerce and mobile POS systems.

Omnichannel demand

87% of retail executives in the region consider omnichannel to remain their main strategy. Consumers expect a seamless experience across both physical and digital channels.

Economic pressure and value-seeking

Following a 25% loss in purchasing power since 2020, consumers place greater importance on price, promotions, and flexible payment options. This pushes retailers to be more agile, efficient, and competitive.

Uneven technology adoption

While many large companies are moving toward modern tech architectures, a significant portion of the sector—especially SMEs—still operates with legacy, on-premise systems or lacks real integration across platforms.

What is e-retail and what are its advantages?

E-retail (electronic retail) refers to the sale of goods or services directly to end consumers through digital channels such as online stores, marketplaces, mobile apps, and social media.

Its main advantages include:

  • Broad, borderless access: Reach customers beyond physical locations, including remote areas.
  • Lower operational costs: With fewer physical store expenses, e-retail can offer more competitive prices.
  • 24/7 availability: Unlike traditional stores, e-retail is always open—expanding sales opportunities.
  • Personalization at scale: With CRM and data analytics integration, it allows tailored recommendations, promotions, and experiences.
  • Automation and efficiency: Sales, payments, inventory, and customer support processes can be easily automated.
  • Scalability: Enables expansion into new markets or customer segments without large physical infrastructure.
  • Accurate consumer behavior insights: Every click, search, and purchase leaves a digital footprint that helps optimize business strategy continuously.

Benefits of Retail for Consumers

From the consumer’s perspective, retail—especially e-retail—offers:

  • Convenience and speed: The ability to shop from home, receive products at their doorstep, or pick them up in-store.
  • Comparison and transparency: Real-time access to prices, descriptions, reviews, and availability.
  • Personalized attention: Targeted promotions, post-sale follow-ups, and reminders of frequently purchased items.
  • Multiple payment and delivery options: From digital wallets to cash payments, and from express delivery to pick-up points.

Latin American consumers are increasingly connected, informed, and demanding. Companies that fail to properly integrate their systems won’t be able to deliver the level of experience today’s shoppers expect.

The Critical Importance of System Integration in Retail

In a context of digital growth, operational efficiency pressures, and high competition, system integration in retail is no longer optional—it’s essential.

This means seamlessly and in real-time connecting the business’s core systems:

  • ERP (Enterprise Resource Planning): Controls inventory, purchasing, logistics, and finance. Commonly used solutions in the region include SAP, TOTVS, Oracle NetSuite, and Microsoft Dynamics.
  • POS (Point of Sale): In-store systems such as Oracle Retail, NCR, Square, Lightspeed, or Retail Pro.
  • E-commerce: Platforms like VTEX, Magento/Adobe, Shopify, SAP Commerce, or Salesforce Commerce Cloud.
  • CRM (Customer Relationship Management): Tools like Salesforce, HubSpot, Dynamics 365, or Zoho to manage customer relationships.

When these systems are not integrated:

  • Manual tasks are duplicated, causing errors and delays.
  • Data becomes scattered and unreliable.
  • Customers receive a fragmented and inconsistent experience.
  • Scaling becomes nearly impossible without losing efficiency.

System integration allows you to automate processes, unify data, respond to the market faster, cut costs, and improve the omnichannel experience. In short, it’s the technological foundation for scaling a retail business sustainably.

How Can Weavee Help You Integrate Retail Systems?

Weavee is an Integration Platform as a Service (iPaaS) designed to connect technology systems in complex and heterogeneous environments, like the Latin American retail sector.

With Weavee, you can:

  • Integrate your ERP, POS, e-commerce, and CRM regardless of the vendor or technology (cloud, on-premise, or legacy).
  • Automate key workflows like order processing, inventory synchronization, or price updates between systems.
  • Avoid costly custom developments thanks to prebuilt connectors.
  • Gain a real-time 360° view of your business and your customers.
  • Scale your operations frictionlessly, even in multichannel and multi-entity environments.
  • Boost your agility to respond to new demands, promotions, sales spikes, or channel shifts.
  • Reduce the risk of operational errors and improve customer experience.

In short, Weavee turns fragmented tech architecture into a connected, efficient ecosystem ready for growth.

Retail in Latin America offers enormous advantages for both businesses and consumers. Its dynamism, adaptability, and economic significance make it a key sector in the region.

However, it also faces complex challenges: technological fragmentation, pressure to offer omnichannel experiences, rising consumer expectations, and global competition. System integration is no longer a luxury—it’s a necessity.

Companies that successfully integrate their ERP, POS, e-commerce, and CRM systems are able to:

  • Automate and scale without friction.
  • Offer personalized and consistent experiences.
  • Make decisions based on reliable, real-time data.
  • Reduce errors, downtime, and operating costs.

Weavee offers a fast, robust, and customized solution so you can connect all your retail systems and scale your business sustainably.

Ready to eliminate friction and accelerate your retail growth?

Explore Weavee’s integration solutions for retail.

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