Uruguay’s Retail Sector: $1 Billion Investment, 170,000 Jobs, and Promising Growth

Uruguay’s retail sector, as detailed in a report by Uruguay XXI, has invested over $1 billion in recent years, employing 170,000 workers—11% of the country’s formal workforce.

The sector’s performance in 2024 showed resilience, with supermarkets and clothing driving growth, while personal care rebounded after early-year fluctuations.

Household consumption rose 0.8% in Q3 2024, according to the Central Bank of Uruguay (BCU), aligning with an 8% increase in imports. Retail imports saw durable goods rise by 11%, automotive products by 15%, and food and beverages by 1%.

Despite a lack of precise retail-specific data, Uruguay XXI highlighted that commerce, accommodation, and food services contributed $1.87 billion to GDP in 2024—15% of the total economy.

Non-specialized retail, including supermarkets and free shops, employed around 65,000 people. Shopping centers added another 16,000 jobs. A survey by Opción Consultores revealed that 91% of shopping mall executives anticipate growth in 2025, with stable or increased labor demand expected.

While profitability remains positive, executives cited infrastructure expansion, cost reduction, technology adoption, and competitiveness improvements as key areas for development.

Growth Amidst Challenges and Investment Promotion

Investment promotion played a crucial role in the sector’s growth. Between January 2010 and September 2024, over 970 retail projects worth $184 million were approved under Uruguay’s investment promotion law.

Foreign companies accounted for 31% of these investments, with major contributions from France, Chile, the U.S., Sweden, Brazil, and Argentina. Supermarkets experienced mixed results in 2024. Sales of large appliances and household items grew during Q2 and Q3, while non-perishable foods and beverages declined.

Excluding water sales—impacted by a severe drought in Montevideo and Canelones—consumption rose by 1%, and revenues increased by 7%. Personal care products saw a 2.7% rise, cleaning products grew by 2.8%, while food consumption edged up by 0.7%.

However, beverage consumption dropped by 11%, reflecting lingering effects of the water crisis. Uruguay’s retail sector demonstrates adaptability amid challenges and continues to attract investments while supporting substantial employment across the country.