Latest news with #Oxxo
Yahoo
30-07-2025
- Business
- Yahoo
FEMSA struggles in Mexico as US expansion marches forward
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: Fomento Económico Mexicano S.A.B. de C.V. (FEMSA) has closed 432 'underperforming' pharmacies in Mexico over the past year as foot traffic in its home country has steadily declined, executives said during the company's second-quarter earnings call on Monday. FEMSA has seen traffic declines for 'several quarters' in Mexico, which it attributes to 'a persistently weak consumer environment' and 'atypically adverse weather conditions,' CFO Martín Arias Yániz said during the call. The closures — as well as a 'significant overhead reduction' made during Q2 — aim to improve FEMSA's profitability in Mexico, he added. The expansion of FEMSA's Oxxo c-store business in the U.S. has been a major storyline in the c-store industry over the past year. Although there's no indication of that process slowing down, FEMSA's 'sustained traffic weakness in Mexico is the clear focal point' for the retailer as it moves into the second half of 2025, Yániz emphasized during the call. Dive Insight: The past quarter was especially difficult for FEMSA and Oxxo in Mexico, where the retailer 'delivered a mixed set of results,' FEMSA Chairman and CEO José Antonio Fernandez Carbajal said in the company's earnings report. While total revenue increased 6.3%, driven by FEMSA's operations outside of Mexico, revenue back home — where it operates over 23,000 Oxxo c-stores — only increased 1.4% year-over-year, while same-store sales in Mexico fell by 1.2%, according to FEMSA's earnings report. 'Our operations were geared to a stronger consumer environment than the one that materialized,' Yániz said during the call. 'Thus, our costs and expenses ran a bit ahead of actual volume and traffic.' Carbajal and Yániz said that the difficult environment notably hurt Oxxo's soft drinks, beer and tobacco sales, and Carbajal added that FEMSA is focusing on getting these categories back on track. 'We are working hard together with our supplier partners to ensure we can adjust our assortment and price-package architecture to remain competitive in addressing our customers' needs as we advance through the summer and approach the key selling season in the fourth quarter,' Carbajal said. Despite its underperformance in Mexico, FEMSA's leaders appear upbeat about the progress it's making in the U.S. As of the end of last quarter, the company has rebranded 40 former Delek c-stores in West Texas to the Oxxo banner, a bump from the 15 it had as of late April, Yániz said during the call. Besides rebrands, new stores have incorporated 'several hundred' new items, including selections from Oxxo's proprietary Andatti coffee program. FEMSA has rebranded Delek stores in the Midland, Odessa and Lubbock areas of Texas and is making its way towards El Paso, Yániz said. 'Early results in terms of incremental sales are promising,' he said. Correction: A previous version of this story incorrectly stated the number of Oxxo c-stores in Mexico and that 432 Oxxo c-stores have closed over the past year. Recommended Reading Oxxo can become 'super regional' player in the US, CEO says
Yahoo
16-07-2025
- Business
- Yahoo
MercadoLibre (MELI) Teams with Oxxo to Expand Financial Access Across Mexico
MercadoLibre, Inc. (NASDAQ:MELI) is one of the Best Non-Mega Cap NASDAQ Stocks to Buy Right Now. Oxxo, Mexico's largest convenience store chain, has announced a new partnership with MercadoLibre, Inc. (NASDAQ:MELI)'s fintech platform Mercado Pago that will allow users of the digital wallet to withdraw cash directly from any of Oxxo's more than 22,000 stores across the country. The service, now available, offers a practical solution for customers who prefer or require physical cash, especially in areas where ATM access is limited or traditional banking infrastructure is scarce. A customer using their phone to access an online commerce platform. The agreement marks a significant step toward expanding financial access for millions of Mexicans. Oxxo's widespread presence gives Mercado Pago users a convenient and secure way to access their funds without relying on bank branches. The integration is designed to be seamless, with transactions processed through Oxxo's existing point-of-sale systems. Executives from both companies emphasized the broader impact of the collaboration. For Oxxo, the move aligns with its strategy to become a one-stop hub for essential financial services, complementing existing offerings such as bill payments and remittances. For Mercado Pago, the deal strengthens user engagement by adding tangible value to its digital ecosystem. The initiative comes as part of a broader trend in Latin America, where fintech firms are increasingly partnering with retail networks to bridge gaps in financial inclusion. Analysts say the partnership is likely to drive foot traffic to Oxxo stores while enhancing Mercado Pago's competitive position in the region's fast-evolving digital payments landscape. While we acknowledge the potential of MELI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Consumer Defensive Stocks to Buy Now. Disclosure: None. This article is originally published at Insider Monkey.
