English 
Spanish 
4 min read
0 comments
Mexican online grocery startup announces sudden closure, raising questions about the reasons behind the decision after a recent major investment.
The digital market has just lost an important name: Justo, a 100% online supermarket chain, announced the closure of its operations in Brazil last Saturday (7). The Mexican startup, which began its journey in the country in 2021, is leaving the market after three years of operation, without giving many details about the decision. The announcement came as a surprise, especially because it came just one month after an investment of US$ 70 million (around R$ 420 million).
What led to the closure of Justo?
Although Brazil has been a strategic market for Justo's expansion, the company appears to be redirecting its efforts to Mexico, where it has significant partnerships, such as the recent collaboration with Amazon for deliveries.
In Brazil, Justo gained prominence by offering products such as produce, cleaning supplies and meat with fast delivery, often on the same day. The model attracted attention during the pandemic, when online grocery shopping exploded. However, operating a 100% digital supermarket proved to be a complex challenge.
- Megaproject challenges the limits of construction: 40 BILLION tunnel that connects two continents through the ocean at MORE THAN 470 meters deep and already has a completion date
- Russia's economy collapsing? Sweden uses satellites to reveal the hidden truth about Moscow
- Tunnel that passes through a river will connect two cities and will have a toll! Brazilian project valued at more than 1 BILLION promises to revolutionize the region and make life easier for drivers and pedestrians
- How to save energy — Reduce your electricity bill by up to R$216
According to consultant Alberto Serrentino, partner at Varese Retail, the Brazilian market is extremely competitive, and online food retail faces specific difficulties. “Operating a pure online food retail business in a difficult and competitive market like São Paulo, for example, is a very complex undertaking,” he says.
Logistics: the great challenge for digital supermarket chains
One of the biggest barriers to the sustainability of 100% digital supermarket chains is logistics. Unlike other retail sectors, food market requires manipulation, specific storage and transportation for different types of products. This makes the rapid delivery process more expensive and complicated.
Logistics infrastructure in Brazil is expensive and relies almost exclusively on road transport, which increases costs. Mariana Munis, a professor of administration at Mackenzie Campinas, points out that Brazil's tax system is also an obstacle.
“Here we tax by state, by federation, by municipality, something that doesn’t happen in other markets. This makes it very complex to have scale in a 100% digital market,” Explain.
Growth of online shopping and the market paradox
Although the closure of digital supermarkets like Justo is an example of the challenges faced by this model, the online grocery shopping market continues to expand. According to NielsenIQ Ebit's Webshoppers report, the grocery sector saw a 26,2% increase in 2023, with 32% of consumers using grocery delivery apps at least once a month.
This growth contrasts with the difficulty of scaling exclusively digital models, especially in competitive markets like Brazil. Competition from giants like Carrefour, Pão de Açúcar, iFood, Rappi and Daki, which already have hybrid operations and a more robust structure, was one of the factors that made it difficult for Justo to consolidate itself in Brazil.
The farewell of Justo and the future of the digital market
Justo, founded in 2019 in Mexico by Ricardo Weder and Brazilian Ricardo Martinez, thanked Brazilian consumers in a post on Instagram. The startup brought innovations and showed that there is demand for online services, but it also revealed the limitations of the purely digital model in a country with so many structural challenges.
Now, Justo's exit opens space for competitors to absorb its clientele and strengthen their operations. Traditional chains such as Carrefour and Pão de Açúcar already have hybrid structures, while platforms such as iFood and Rappi continue to expand their services in the supermarket sector.
Reflections on the 100% digital model
The closure of Justo's operations in Brazil raises an important question: is the 100% digital supermarket model viable in complex markets like Brazil? Experience shows that logistics, taxation and infrastructure are still major barriers. Furthermore, competing with established chains that already have a physical and digital presence makes the scenario even more challenging.
However, this does not mean that the digital model is doomed to failure. On the contrary, it remains a trend, but may need to be rethought and adapted to local conditions. Integration with larger platforms and strategic partnerships may be the way to overcome these difficulties.
For consumers, the market remains full of choices, with traditional companies and startups competing to offer convenience and efficiency.
For entrepreneurs, the lesson is that innovation is necessary, but understanding the peculiarities of the market is essential for long-term success. The closure of Justo is a reminder that technology is a powerful tool, but the retail market, especially the food market, requires more than innovation: it demands resilience and adaptation.
