Local Consumption Reconfiguration and Consumer Decisions Between Proximity and Convenience: Factors Associated with the Displacement of Neighborhood Store

Abstract

This study examines the determinants shaping consumer choice between traditional neighborhood stores and supermarkets within a rapidly evolving retail landscape. Using a quantitative, descriptive, non-experimental, and cross-sectional design, data were collected through a structured 17-item questionnaire on a five-point Likert scale, grounded in the proximity framework of Gahinet and Cliquet and expanded with dimensions aligned to contemporary urban consumption dynamics. A non-probabilistic convenience sampling strategy yielded 145 participants, predominantly from Asunción and the Central Department. Results show that neighborhood stores maintain relevance for urgent, time-sensitive purchases—consistent with functional proximity—yet lose competitiveness against modern express formats that optimize operational convenience. Relational proximity appears weakened, while limited technological modernization, particularly the absence of digital payment methods, constitutes a decisive barrier in purchase choice. Overall, findings reveal a structural shift in consumption patterns toward technologically enabled convenience, underscoring critical strategic challenges for the long-term viability and adaptive capacity of neighborhood stores within Paraguay’s urban retail ecosystem.