About two months after it began rebranding the c-stores it acquired last year from Delek US Holdings, Fomento Económico Mexicano S.A.B. de C.V. (FEMSA) has now converted 15 locations to its Oxxo banner. And signs point to the Latin American retail giant ramping up those conversions, and updating the in-store offerings at greater speed in the coming months.
José Antonio Fernandez Garza, CEO of FEMSA’s retail division, said. “The increasing sales and traffic have been significant, even in the double digits for the first store,”
However, the executive emphasized that “it’s too soon to tell” what kind of sales expectations FEMSA will have for its U.S. Oxxo rollout. He admitted that the early success is likely a “honeymoon phase” that will eventually stabilize, and that FEMSA still has “a lot of work” to do to build Oxxo’s value proposition in the U.S.
Garza compared the sustainable growth FEMSA wants for Oxxo to that of a few regional players who’ve built loyal followings through consistent organic growth and quality in-store offerings.
“The players that are winning share are the ‘super regionals’ — the Wawa’s, the Casey’s, the QuikTrip’s,” Garza said. “They’re not obsessed with big M&A. They’re obsessed with getting the value proposition right and expanding organically. That’s what we want to do.”
Full story Oxxo can become ‘super regional’ player in the US, CEO says | C-Store Dive
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