Mexico news & analysis

05 August 2022
In Latin America, the sales penetration of private label is well behind the levels seen in more developed regions, e.g. Europe and North America. But, in recent years this has started to change.    High inflation, coupled with the highest unemployment levels witnessed in over 30 years has weakened the purchasing power of many Latin Americans. As a result, people have had to reduce their spend ...
08 July 2022
This Tuesday (5 July), FEMSA, a Mexican Coca-Cola bottler and convenience store operator, announced its all-cash offer to acquire Swiss convenience and foodservice retailer Valora. The deal is subject to regulatory approval, but if approved, FEMSA has agreed to purchase all the publicly held shares of Valora Holding AG for 260 Swiss francs per share, totaling CHF1.1 bn (€1.1 billion). It expect...
21 June 2022
Our latest research reveals that Walmart’s revenue is set to reach almost $750 bn by 2027. Between 2021 and 2027 it is expected to grow by 4.7% on a CAGR basis, reaching $747.6 bn. $180 bn growth opportunity Our new report Strategic outlook for Walmart , reveals that Walmart’s growth will be led by its operations in the USA, India and Mexico. Over recent years the retailer has recast i...
10 June 2022
OXXO, a Mexican convenience retailer owned by FEMSA, opened its first store in 1978 and has since accumulated 20,172 stores in Mexico (Q1 2022). Throughout the pandemic, government restrictions on mobility created some of OXXOs toughest trading challenges in its history. The retailer showed impressive agility, quickly adapting its proposition to meet changing consumer needs and to tackle the d...
06 June 2022
Multinational retailer Dollarcity was founded in El Salvador in 2009. After almost 10 years of operation, it sold a 50.1% share of its business to Dollarama (a Canadian dollar store retail chain) for a value close to US$95m. The dollar store concept, known locally in the region as ‘dolarazos’, is becoming popular. Their strength lies in their varied assortment of consumables, general merchandi...
27 May 2022
While most retailers have seen inflation benefit their top line in their latest quarterly performances, many have seen their profitability dip. Unable to pass on the full impact of higher costs to customers, or reduce costs in other parts of their business given the rapid run-up in inflation this year, margins have been impacted. But Costco has fared better. We look at how it outperformed its pee...
17 May 2022
Despite a solid sales performance in the first quarter, against tough comparables, Walmart saw a sharp hit on profitability due to higher costs. We look at the impact on its performance and its updated outlook for the year. Walmart's Q1 key numbers Walmart's total revenue in Q1 increased by 2.4% to $141.6bn, representing an additional $3.3bn Sales in its US stores increased by 4.0%, w...
13 May 2022
Since the start of the pandemic, many Mexicans have transitioned their grocery shop to smaller formats, in stores closer to their homes. Initially, this change of habit was to reduce contact and mitigate the threat of the COVID-19 virus, but they have since become accustomed to the time and cost-saving benefits of shopping locally. Mexico has a huge informal economy, meaning large sections of ...
13 April 2022
PayPal's John Rainey has been named as Walmart’s new CFO. He takes over the position from Brett Biggs on June 6. Biggs announced last year that he would be stepping down from his role, having spent 22 years at the retailer. Joining from PayPal Rainey joins Walmart from PayPal, where he currently serves as its CFO and EVP, Global Operations. He joined the company seven years ago, helping it ...
07 March 2022
Costco’s net sales increased 16.1% in the second quarter, maintaining its strong pace of growth despite tough comparables from last year. Against this backdrop of growth, we look at how it is navigating cost and supply chain challenges. Q2 key numbers Net sales increased 16.1% to $50.9 bn Comparable sales (ex-fuel and currency impacts) up 11.3% in the US, 12.4% in Canada and 9.0% in o...