Decolar Takes a Leap from E-commerce to Physical Retail, Making Substantial Investments in Shopping Mall Across Brazil
- The company has recently launched eight physical stores and plans to increase that number to eleven by December
- As per the GROCS platform, the current sale per square meter for travel-related stores in Class B shopping centers is R$5,700 in Brazil. In the specific case of assets in São Paulo, the average selling price is R$8,037/m2
The travel company Decolar has just announced a strategic move, investing in the physical stores within brazilian shopping mall —a bold move against the prevailing trend where many businesses are streamlining physical operations in favor of e-commerce.
Decolar has opened eight physical stores, with five in the state of São Paulo, two in Minas Gerais, and one in Rio de Janeiro. Anticipated by the end of December, the company aims to have 11 physical locations spread across shopping malls throughout Brazil.
Alex Todres, the General Director of the company in Brazil, highlighted that Decolar's physical stores are designed to offer an immersive omnichannel experience, featuring exclusive products crafted specifically for in-person interactions.
"This opening signifies a new milestone for Decolar in the country, providing a personalized service to customers who prefer booking their trips at a physical location. Our stores will also feature unique offerings such as cruises and tours," Todres explained.
The company, originally from Argentina, emphasizes that Brazil is currently its primary market. Their objective is to sustain growth in both online and physical operations within the country.
Expansion Strategy
In this initial phase, Decolar concentrated on Class B assets during this phase according to data from GROCS by SiiLA—a platform providing insights into the performance of Brazilian shopping centers. According to GROCS, the current sale per square meter for travel sector stores in Class B shopping centers is R$5,700 in Brazil. Examining the performance of stores in Class B shopping centers in São Paulo, travel agencies boast an average selling price of R$8,037/m2.
Decolar invested in stores located in key shopping destinations:
- Anália Franco Shopping and Bourbon Shopping in São Paulo;
- ParkShopping São Caetano in São Caetano do Sul;
- Grand Plaza Shopping in Santo André;
- ParkShopping Dom Pedro in Campinas;
- Barra Shopping in Rio de Janeiro;
- BH Shopping and DiamondMall in Minas Gerais.
Decolar's upcoming phase involves opening a new store at Jundiaí Shopping in the interior of São Paulo and additional locations at Shopping Pátio Paulista and MorumbiShopping, both in the capital.
Beyond the Digital Realm
This venture into physical spaces is not Decolar's first. Operations are already active in Colombia, Chile, Mexico, and Peru through companies like Viajes Falabella and BestDay. Established in 1999, Decolar is part of a group of travel companies originating from Argentina, starting with Despegar. In 2022, the company acquired a 51% stake in the Rio de Janeiro startup Stays.net, marking its entry into the seasonal space rental sector—an offering similar to those provided by Airbnb and Booking.
Furthermore, since 2019, the group has made several acquisitions, including Viajes Falabella, Best Day, HotelDO, Koin, and ViajaNet.
