Stepping into an AMPM or a Fresh Market store in Costa Rica is an experience similar to the 7-Eleven convenience stores in the United States or the Circle K or Mac’s stores in Canada. Ticos are increasingly warming up to these stores, which are slowly displacing the traditional pulperias that can still be found in working-class suburban neighborhoods and rural communities.

According to a recent news article by Cesar Brenes Quiros of the prominent business weekly El Financiero, AMPM and Fresh Market are bracing for a newcomer into their burgeoning retail segment: Automercado. The news from El Financiero indicate that Automercado is getting into the convenience store segment, and that they are currently busy building at least ten stores in different shopping centers around the country. The name of the stores has not yet been revealed, but El Financiero calls attention to its older sister publication La Nacion and a “Help Wanted” classified ad that Automercado recently published therein. That ad from Automercado is looking for convenience store manager and clerks.

The Automercado administration has stated that it will make a formal announcement on the matter in about a month. The only hint at Automercado’s plans come from a brief corporate communication:

“In light of our customer’s needs and with regard to market demands in general, we have decided to explore a new service platform, which for strategic reasons will be not be revealed until July. [This new concept] will consist of quick purchases, ready-to-eat products, and easy-to-access services.”

The Automercado supermarkets have always been known to provide a shopping experience that is similar to North American grocery stores, from their import product selection to the store layout and service. Automercados are popular among expatriates due to the quality and familiarity they provide -although such characteristics translate into prices that are usually higher than the competition.

The AMPM and Fresh Market retail chains are owned by the same corporation, which is prepared to face the competition from Automercado. AMPM will see ten more new locations in Costa Rica this year, for a total of 38 by the end of 2012. The company estimates that it will close the year with more than 12 Fresh Markets, and franchises will be offered soon. This is the same company that operates the Taco Bell and Spoon restaurants in Costa Rica.

There are about 18,000 pulperias and mini-marts in Costa Rica, but many are being displaced by the growth of supermarkets (particularly Pali and Mas x Menos, owned by Wal-Mart) and the new convenience stores. Older Ticos still remember the joys of being sent to the pulperia on an errand by their parents and walking out with free candy courtesy of the shopkeeper. The pulperias were often lifesavers for families who lived from paycheck to paycheck since they could always trust on the shopkeeper to sell them groceries on credit.

The free candy is gone and the children are seldom sent to the pulperias these days. The store credit has been replaced by plastic cards with high interest rates, and the pulperias themselves can no longer compete with the proliferation of modern convenience stores and supermarkets. AMPM, on the other hand, is reporting sales growth of about 20 percent each year.