Discusses the distribution network within the country from how products enter to final destination, including reliability and condition of distribution mechanisms, major distribution centers, ports, etc.
Last Published: 10/18/2019
U.S. goods and services have a high level of penetration in the Costa Rican marketplace. Purchasing power is concentrated near the capital:  73 percent of the country’s 5 million consumers live in the San Jose Metropolitan Area, also known as the Central Valley. The retail distribution sector closely follows U.S. practices. Costa Ricans are accustomed to large shopping centers and malls that house retail stores, kiosks, food courts, theaters, and supermarkets.

Franchise outlets, smaller mixed-use commercial centers and hypermarket-type operations have proliferated, due in part to increased competition from large retail chains such as PriceSmart and Walmart.  There are currently five large department store chains, six supermarket chains, and countless small and medium-sized family-owned businesses. U.S.-owned Walmart is the single largest chain, controlling all Mas X Menos, Hipermas, MaxiMercados, and Pali Stores in Costa Rica and the rest of Central America. Other well-known retailers are Automercados, Perimercados and Megasuper. Rural areas are generally served by "pulperias", or family-owned general stores.

The concept of customer service is very important in Costa Rica.  TV (both local and cable), radio, print and billboard advertising, and discounting are widely accepted commercial practices.

Distribution channels do not vary significantly among food and agricultural products.  Some products (for example, fresh fruits and frozen foods) require technical knowledge regarding handling due to their shelf-life requirements and need for refrigeration.  Such facilities are readily available in Costa Rica, as the country exports fresh and frozen foods to other Central American and Caribbean countries.  Private firms import processed consumer foods, while several wholesalers are dedicated to importing agricultural products. Many companies incur additional costs due to delays at Customs in clearing goods.   The food product distribution chain to supermarkets smaller stores is well developed.  Some of the larger supermarket chains import directly. However, U.S. firms must consider the need to adapt packaging and labeling requirements to comply with local regulations and registration processes for most consumer goods.

Although it is possible to export directly to Costa Rican retailers, U.S. firms will find it beneficial to work with a local representative and possibly even establish a local sales office. A local representative is critical for those companies wishing to sell to private sector companies or to government institutions.  Since Costa Rica is a small market, one representative/distributor is often sufficient to cover the entire country.

 
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Costa Rica Marketing