Variety Stores in Mexico

PROSPECTS

Welfare programmes and credit attract lower-income consumers to variety stores

Variety stores continued to see current value growth in 2019, although this was slower than in previous years. Several of the leading players in variety stores have traditionally focused their sales strategies on low- and middle- income consumers, which is in line with the population profile where their stores are located.

New entrants offer Asian beauty products

New players continue to enter variety stores, including Mumuso and Yoyoso. These two retail brands offer very similar types of stores, with both stocking a variety of Asian beauty products.

Large store chains invest in omnichannel retailing

At the end of the review period, several players carried out plans to increase their presence in omnichannel retailing, and some of them attribute their growth to their omnichannel strategies. Elektra is one of these – its omnichannel strategy has allowed the retailer to increase the portfolio of products offered.

COMPETITIVE LANDSCAPE

Coppel benefits from outlet expansion and offering credit

Despite seeing a minor share decline in 2019, Coppel continued to dominate variety stores in value terms, thanks to having more than 900 outlets across the country. The company targets low- and middle-income consumers.

Miniso expands, is taken over by Grupo Carso and set to move into e-commerce

Asian retail brand Miniso arrived in Mexico in early 2017, and has been growing rapidly in the country. This is a low-price store specialised in housewares, as well as consumer products such as apparel, toys, kitchen products, tools and cuddly toys.

Sanborns moves its focus away from variety stores

Sanborns has been closing some of its variety stores, and is instead focusing on operating mixed format stores, such as Sanborns-Sears combined stores and Sanborns store and restaurant combinations. Some of the new shopping centres being opened do not have a Sanborns store, which is very unusual compared with in the past, when every shopping centre featured a Sanborns.

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