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terminals at international airports. TCA provides full logistics and storage services to all<br />
foreign cargo agents. TCA's primary business is bonded warehouse management at the<br />
major Argentine <strong>In</strong>ternational Airports, where the company stores imported and exported<br />
cargo while their consignees perform all relevant formalities with the General Customs<br />
Administration or Dirección General de Aduanas (DGA). TCA's headquarters are located<br />
at Ezeiza <strong>In</strong>ternational Airport. Additionally, the company has branches in Córdoba,<br />
Mendoza, Mar del Plata, and Jorge Newbery Domestic Airport, in Buenos Aires City.<br />
Air cargo imports have been growing rapidly in the past years. U.S. exporters shipping<br />
small items to <strong>Argentina</strong> in a short time frame may want to consider the benefits of air<br />
routed or express delivery services. U.S. products imported under air-routed services<br />
correspond mainly to the following sectors: pharmaceutical products; electric power<br />
systems; computer software; computers and peripherals; telecommunications<br />
equipment; medical equipment and supplies; automotive parts and service equipment;<br />
pollution control equipment; office equipment; irrigation equipment; mining supplies;<br />
construction machinery and equipment; security equipment components; industrial<br />
chemicals.<br />
Express delivery has rapidly evolved following <strong>Argentina</strong>'s liberalization of postal<br />
services and strong local and international competition. <strong>In</strong>ternational courier delivery<br />
services are extremely active and most global express delivery firms have significant<br />
operations in <strong>Argentina</strong>, including FedEx, DHL, and UPS.<br />
The Retail Network<br />
There are two types of traditional sales channels in <strong>Argentina</strong>. One is through largescale<br />
retailers with a defined but limited share of the market. The other is through the<br />
many specialized retailers that seek to protect their niches.<br />
The food retail market is loosely separated into three categories: traditional "mom and<br />
pop" stores scattered throughout local neighborhoods, self-service mini markets and<br />
drugstores, and the supermarkets and hypermarkets.<br />
Throughout the past decade, supermarkets and hypermarkets have dominated the<br />
Argentine retailing market. (i.e. very large stores that carry products found in a<br />
supermarket as well as merchandise commonly found in a department store). Some<br />
discount stores, characterized by smaller retail space, a limited product selection, and<br />
very low prices, which emerged in 1999, are reconverting into a traditional supermarket<br />
format.<br />
Consumers prefer hypermarkets and supermarkets for practicality and convenience,<br />
particularly for monthly or weekly purchases. Hypermarkets provide a selection of<br />
between 50,000 to 100,000 items under one roof and supermarkets provide between<br />
5,000 and 15,000 items. <strong>In</strong> an effort to become more competitive, these stores are<br />
providing additional services such as film developing, dry-cleaning, and an array of new<br />
products such as toys, apparel, school supplies, and holiday decorations.<br />
A large number of mergers, acquisitions, and transfers have taken place during the last<br />
few years. This wave has impacted several industries, including apparel, housing<br />
construction, decoration materials and music. Concentration of distribution channels is<br />
expected to continue over the next few years.<br />
3/4/2008
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