Retail in Latin America: advantages, characteristics and the key role of system integration

5/12/2025

Ecommerce
Growth

In an increasingly competitive, dynamic and digital market, retail is consolidating itself as one of the most relevant sectors for the Latin American economy.

From large multinational chains to small local businesses, retail encompasses a 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 for both companies and consumers? ?What is e-retail, what characteristics define the retail in Latin America And what role does system integration play today to operate efficiently and scale without friction?

In this article we are going to help you understand Why retail remains a key driver for the region and How Weavee can become an ally strategic to scale in this context.

What is retail and what are its advantages?

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

The advantages of the retail model are multiple:

  1. Accessibility: Retail brings products closer to the consumer, whether through neighborhood stores, supermarkets, marketplaces or e-commerce platforms.

  2. Variety and availability: It offers a wide range of products, brands, prices and purchase options, adapted to the customer's needs and preferences.

  3. Speed and Convenience: It allows immediate purchases or with fast delivery, both in physical stores and through digital platforms integrated with logistics systems.

  4. Employment generation: It is one of the sectors that generates the most employment in Latin America, both in stores and in logistics, technology, customer service and marketing.

  5. Boosting the economy: Retail represents a significant percentage of GDP in several Latin American countries and is key to the development of SMEs and local suppliers.
  6. Adaptability: It has the ability to adapt quickly to changes in demand, consumer trends and new channels, such as social commerce or mobile apps.

  7. Closeness to the customer: It is the sector that best knows the consumer, their habits, preferences and behaviors, which positions it strategically to offer personalized experiences.

What are the characteristics of retail in Latin America?

Retail in Latin America has peculiarities that distinguish it 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 challenges of standardization and technological integration.

Growth of e-commerce

The region leads global e-commerce growth, with a projected CAGR of 11% between 2024 and 2028. In countries such as Mexico and Brazil, e-commerce represents more than 50% of total retail growth.

High use of smartphones

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

Demand for omnichannel

87% of retail executives in the region believe that omnichannel will continue to be their main strategy. Consumers expect a seamless experience between physical and digital channels.

Economic pressure and the search for value

After a 25% loss in purchasing power since 2020, consumers value price, promotions and flexible payment options more. This forces retailers to be more agile, efficient and competitive.

Uneven adoption of technology

Although many large companies are moving towards modern technological architectures, a large part of the sector (especially SMEs) still operates with legacy systems, on-premise or without real integration between platforms.

What is e-retail and what advantages does it offer?

E-retail, or electronic retail, is the sale of products or services to the final consumer through digital channels: online stores, marketplaces, mobile apps, social networks, etc.

Its main advantages include:

  • Mass and borderless access: It allows reaching customers beyond the physical environment, including remote geographical areas.

  • Lower operating costs: By reducing the costs associated with physical stores, e-retail can offer more competitive prices.

  • 24/7 availability: Unlike traditional stores, e-retail is always open, which expands sales possibilities.

  • Customization at scale: Thanks to data analytics and integration with CRM systems, it allows us to offer recommendations, promotions and experiences tailored to the profile of each customer.

  • Automation and efficiency: Sales, payment, inventory management and customer service processes can be easily automated, optimizing resources.

  • Scalability: E-retail facilitates expansion to new markets or segments without the need for a large physical infrastructure.

  • Accurate measurement of consumer behavior: Every click, search and purchase leaves a digital footprint that allows us to continuously optimize the business strategy.

Benefits of retail for consumers

From the consumer's point of view, retail (and especially e-retail) offers:

  • Convenience and speed: Possibility to buy from home, receive products at home or pick up at the store.

  • Comparison and transparency: Access to prices, descriptions, ratings and availability in real time.

  • Personalized attention: Segmented promotions, post-sales follow-up, reminders of common products.

  • Multiple payment and delivery options: From digital wallets to cash payments, and from express deliveries to collection points.

The Latin American consumer is increasingly connected, informed and demanding. Companies that don't properly integrate their systems won't be able to deliver the level of experience expected today.

The critical importance of retail system integration

In this context of digital growth, pressure for efficiency and high competition, the integration of retail systems becomes indispensable.

This involves fluidly connecting key business systems in real time:

  • ERP (Enterprise Resource Planning): controls inventory, purchasing, logistics and finance. SALT, TOTVS, Oracle NetSuite and Microsoft Dynamics are the most used in the region.

  • POS (Point of Sale): point of sale systems in physical stores, such as Oracle Retail, NCR, Square, Lightspeed, or Retail Pro.

  • E-commerce: platforms such as VTEX, Magento/Adobe, Shopify, SAP Commerce, or Salesforce Commerce Cloud.

  • CRM (Customer Relationship Management): tools such as 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 is dispersed and loses reliability.
  • The customer receives a fragmented and inconsistent experience.
  • It becomes almost impossible to scale without losing efficiency.

The integration allows you to automate flows, unify data, respond faster to the market, reduce costs and improve the omnichannel experience. In short: it is the technological basis for scaling the retail business in a sustainable way.

How can Weavee help you with retail system integration?

Weavee is an integration platform (iPaaS) designed to connect technological systems in complex and heterogeneous environments, such as that of Latin American retail.

With Weavee you can:

  • Integrate your ERP, POS, e-commerce and CRM regardless of vendor or technology (cloud, on-premise or legacy).

  • Automate key flows such as order processing, inventory synchronization, or price updates between systems.

  • Avoid costly custom developments thanks to predefined connectors.

  • Get a 360° view of the business and the customer in real time.

  • Scale your operations seamlessly, even in multichannel and multi-enterprise environments.

  • Increase your agility to adapt to new demands, promotions, sales peaks or channel changes.

  • Reduce the risk of operational errors and improve the customer experience.

In short, Weavee turns a fragmented technological architecture into a connected, efficient ecosystem ready to grow.

El retail in Latin America has enormous advantages, both for companies and for consumers. Its dynamism, adaptability and economic relevance make it a key sector for the region.

However, it also faces complex challenges: technological fragmentation, pressure for omnichannel, consumer demands and global competition. System integration is no longer a luxury: it's a necessity.

Companies that correctly integrate their ERP, POS, e-commerce and CRM achieve:

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

Weavee offers an agile, robust and tailored solution so you can connect all your retail systems and scale your business in a sustainable way.

Ready to eliminate friction and accelerate your retail growth?

Learn about Weavee's integration solutions for retail

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