Showing posts with label retail. Show all posts
Showing posts with label retail. Show all posts

Friday, February 27, 2015

Femsa to Become Gasoline Retailer

Fomento Economico Mexicano (Femsa), the main bottler of Coca-Cola announced it will acquire 227 Pemex gas stations, which it is actually already operating under the brand Oxxo Gas. The company entered the gasoline business in 1995, but under the law it could only do so through third parties who had Pemex franchises because it had foreigners among its shareholders.
Under the recently passed energy reforms, private operators, including foreigners, will now be permitted in the retail gasoline business. Femsa told reporters it plans to buy the gas station operations where it has agreements with Pemex franchisers and operates under the brand Oxxo Gas.
According to Femsa it will lease, buy or open more stations in the future. In its filing on Thursday with the Mexican Stock Exchange (BMV), in which it submitted its fourth quarter financial report, Femsa said “it decided to pursue a strategy of accelerated growth in this business.”
(from Economía)

Monday, October 6, 2014

American, Spanish retailers expanding

tommy hilfiger storeTommy Hilfiger store in Puebla.OUTLET PUEBLA

Two foreign retail chains, one American and the other from Spain, are increasing their presence in Mexico with new stores this year.
Fashion retailer Tommy Hilfiger will have six new stores by the end of the year, bringing its total to 45, not including the 1,400 points of sale it has in department and clothing stores.
And Spanish jeweler Tous, which currently has 60 stores, will open six more this year.
New Tommy Hilfiger stores will be opening in Mexico City, Monterrey, Guanajuato, Veracruz and Morelos in time for Christmas. Additional growth will be seen in the north where until now the company has had less focus because buyers there can travel to the United States to shop.
But insecurity has cut back on the number of Mexicans crossing the border for shopping, said Lorenzo Ruiz, in charge of the firm’s Mexico operations.
Rosa Tous, cofounder of the Spanish jewelry brand, said Mexico is one of its principal markets, and Latin America represents 26% of its sales worldwide.
Recently the chain has been relocating and redesigning its Mexican outlets in order to display more of its collections. The brand is also innovative with its product lines, said Tous. “We’ve broken established rules in the jewelry business by mixing diamonds with silver, silver with gold plating . . . which has allowed us to adjust our prices to suit all pocketbooks.”
Source: El Financiero 1 (sp), El Financiero 2 (sp)
- See more at: http://mexiconewsdaily.com/news/american-spanish-retailers-expanding/#sthash.cNrDC9EG.dpuf

Thursday, October 2, 2014

Williams-Sonoma coming to Mexico

liverpool interlomasLiverpool's stainless steel-clad store in Interlomas, Mexico City.VNORTE

High-end American retailer Williams-Sonoma is coming to Mexico, thanks to a franchise deal with department store chain Liverpool.
The multi-year agreement gives Liverpool, Mexico’s largest chain of department stores, rights to sales in stores and online of brands that will include Williams-Sonoma Home, Pottery Barn, Pottery Barn Kids, PBteen and West Elm.
Williams-Sonoma sells furniture and housewares through websites, direct-mail catalogs and 589 stores and operates in Canada, Australia and the United Kingdom, in addition to the United States.
Liverpool, meanwhile, is a Mexican firm with 100 department stores, most of which operate under the Liverpool brand, while 24 use the name Fábricas de Francia.
The first stores are expected to open next year.
Liverpool was founded in 1847 by a French immigrant who began by selling clothes in Mexico City, and later imported merchandise from Europe. A lot of his goods were shipped out of Liverpool, England, from which it gets its name.
Its sales in 2012 were US $4.5 billion.
Source: El Financiero (sp)
- See more at: http://mexiconewsdaily.com/news/williams-sonoma-makes-deal-liverpool/#sthash.5sIXLUnW.dpuf

Wednesday, August 20, 2014

Mexico is the country with the most Future Leaders: Forbes Magazine

theyucatantimes.com
 
Which countries have the most promising crops of leaders coming up through the ranks today, and where in the world are there more young people likely to develop into leaders tomorrow? And how can leadership be measured at all? SHL, a U.K.-based talent management consulting firm, has just released a study that aims to provide answers to those questions.
A giant in the world of employee assessments, SHL has more than 10,000 clients in over 100 countries, ranging from consulting firms Deloitte and KPMG to airlines like Cathay Pacific, multinationals like Unilever and public sector organizations like the United Nations and the European Personnel Selection Office, which does the hiring for the European Commission.
This year, executives at SHL decided to mine data from past employee assessments and try to shed some light on the leadership potential in the many countries where it works. This morning it released a list of the countries it believes have the greatest percentage of effective leaders, and those that it sees as most likely to develop leaders within the next three to five years. The country with the most leaders today: Hong Kong, which the report treats as a separate country, though it is an administrative region of mainland China. The country with the most future leaders: Mexico.
SHL used data from 1.05 million client surveys that it gathered from 2006 through 2011, to come up with its list. It focused on eight different skill areas to measure leadership capability: initiating activity and deciding, supporting and cooperating, interacting with and presenting to others, analyzing and interpreting data, creating and conceptualizing ideas, organizing and executing plans, adapting and coping with others, and finally, performing and achieving.
In Hong Kong, 14% of those surveyed show strength across all categories. Next comes Germany, with 13.4%, then the U.K. with 10.3%, Australia with 10%, and in fifth place, the U.S., with 9.9%. That list may not be surprising. But the countries with the most leaders waiting in the wings is less expected. After Mexico, with an impressive 53.9% of people scoring as future leaders, comes Turkey, with 49.5%, Egypt with 44.1%, Switzerland with 43.4% and Brazil with 41.8%. The U.S. drops down to eighth place on the leadership of tomorrow list, with 41%.
While the big emerging market countries of India and China don’t make the top 25 countries SHL says are supplying leaders today, they are both on the list of countries nurturing tomorrow’s leaders, with India above the U.S. at number six, with 41.3% of those surveyed meeting the criteria and China in the 25th slot, with 34.3%.
Eugene Burke, chief science and analytics officer at SHL in London, explains that to rank as incubators of tomorrow’s leaders, countries need to score well in just a couple of categories, rather than in all eight. In India and China, Burke says that many employers have encouraged people to perform well at delivering services and competing for outsourced work.“The kinds of people who have been appointed as leaders are the ones who can do the analysis and organize the resources to get the job done,” he says.
“They score high on organizing and executing.” As for Mexico, its market is becoming more international, says Burke, and its leaders are strengthening in several different categories.
Why does the U.S. drop several slots from the current to the future rankings?
Though the U.S. has strong leaders in some sectors like retail, banking, insurance and financial services, other businesses, like consumer goods and telecommunications, are not attracting the same level of leadership, says Burke. “The U.S. has longer term potential,” he adds, but U.S. companies had better put stronger leadership programs in place and possibly look abroad to recruit leaders in those sectors where leadership is weaker.
By Susan Adams 

Monday, July 28, 2014

20% of Retail Sales in Mexico Will Be Online By 2018


go to original
July 28, 2014
Experts predict that retail sales made over the Internet and by telephone will grow 12 percent in Mexico during the next five years and will represent 19 percent of the revenues of its commercial chain stores.




















Online commerce will represent almost one-fifth of all retail sales in Mexico by 2018, forecasts the consultancy Euromonitor International. The increase will be the result of increased Internet availability and growth in the number of smartphones and tablets, as well as increased practicality.
Sales by Internet and by telephone will grow 12 percent in the next five years and will represent 19 percent of the revenues of commercial chain stores. In 2013 that figure was 7 percent.
The number of Mexicans connected is expected to rise from the current 41 percent to 52 percent in four years, said Euromonitor analyst Ingrid Belmont.
Walmart launched its online store in 2013 and reported more than 28 million visits after seven months of operation. Its other portal, Superama, recorded 7.5 million users last year on its website and through its mobile applications.
The company has said it will launch the site sams.com.mx this year.
Walmart has a distribution center exclusively for the delivery of merchandise purchased online. Home delivery is available in 48 cities.
Francisco Guzmán, an analyst with the financial services firm Grupo Financiero Interacciones, believes that Walmart intends to be the Amazon of electronic commerce in Mexico. Guzmán thinks this will prompt other chains to do the same.
There are already several other players in e-commerce in Mexico. Soriana, for one, reports double-digit growth in sales so far this year. Other stores offering online sales are Costco, Palacio de Hierro, Liverpool, Amazon, Dafiniti, Linio, and Modalia.
Electronic commerce was valued last year at 121.6 billion pesos, with the bulk of sales being in music and films, says the Mexican Internet Association, noting that 37 percent of Internet surfers spend between $400 and $1,000 pesos each time they buy online.
To encourage sales, online stores offer alternatives to paying with a credit card, such as bank deposits, PayPal, or cash on delivery.
Original Story

Wednesday, June 18, 2014

Wal-Mart Dominates E-Commerce in Mexico


go to original
June 13, 2014
Along with its subsidiary, Superama, Wal-Mart last year started offering same-day delivery to its Mexican online customers - with huge success: their stores handle 92% of all of Mexico's online retail purchases.






















Mexico City, Mexico - Wal-Mart Stores Inc. has found a golden opportunity in Mexico: in only a year, the retail chain has managed to crack e-commerce, a way of doing business that scarcely existed in the country before.
Along with its local subsidiary, Superama, Wal-Mart last year started offering same-day delivery to its Mexican online customers - and with great success: 92 percent of Mexican online retail purchases are to either Wal-Mart or Superama.
"Online orders are the next frontier for retail," said HSBC analyst Francisco Chévez. "Once you get people hooked, that is it."
Online shopping has pushed the company forward. Combining both e-commerce and traditional shopping, over half of Mexicans buy at Wal-Mart. The chain is now the highest-earning supermarket in the country, contributing to 61 percent of total retail revenues.
Even with the rosy numbers, Wal-Mart had a hard 2013. Last year, the Mexican branch of the company saw a 1.3 percent drop in its yearly revenues - just like the rest of the Mexican supermarket chains. With a countrywide economic slowdown, Mexican retail experienced a setback in profits of almost 1 percent from 2012, according to a report by Credit Suisse.

E-commerce has proved a crucial asset for the company in a troubled year. The online option has brought more customers to the chain: 53.3 percent of Mexicans now shop at Wal-Mart, as opposed to 52.1 percent since last year
Wal-Mart is planning to triple the number of stores offering grocery delivery in Mexico in the second half of this year. Currently, online orders are sent to the existing public stores, but next year Wal-Mart plans to open several "dark stores" exclusively to deliver web purchases.
The company has been trying to expand its online grocery business in the United States, in hopes to catch online rival Amazon. However, only 2 percent of Wal-Mart’s US sales come from the web.
But Amazon is not a presence in Mexico, and local supermarkets and department stores do not offer online sales.
Wal-Mart Mexico can make e-commerce and home delivery work due to the gap between the earnings of its target customers and its employees. Wal-Mart appeals mostly to a wealthier demographic in Mexico, households with incomes above $3,000 a month. This sector of the population makes well over the average household income $1,061 a month. The company pays its workers around a fourth of that.
A "picker," the person who assembles online orders and sometimes helps customers over the phone, starts with a salary the equivalent of $90 per six-day workweek. That comes to $360 a month - just over a tenth of the monthly salary of Wal-Mart’s target audience.
Delivery men are usually freelancers. They get paid around $1.5 per delivery, with no health benefits, and have to supply their own car or motorbike. In the US, Wal-Mart provides the truck.
Wal-Mart is hoping to expand its online retail service to other countries as well. The Mexican e-commerce team is currently training Wal-Mart China, figuring that the model would also work well there: both countries have a low wage base, very dense urban areas and a growing online retail market.
Original Story

Saturday, September 28, 2013

Additional indicators confirm a positive outlook for Mexico (EWW) (Part 4)

marketrealist.com
By Sr Emerging Markets Analyst • Sep 27, 2013

Is the Mexican market becoming bullish?

Below are additional macroeconomic indicators released in September that point towards a recovery in the Mexican economy (EWW). The Mexican market may be changing its course towards a bullish trend.

EWW vs SPY 2013-09-18

Unemployment drops

The rate of unemployment also continued its downward trend during August, dropping to 5.2% in August versus 5.4% a year earlier. On a monthly seasonally adjusted basis, the drop was 0.1% lower than the 4.8% recorded in August.

Urban unemployment, which is a better gauge of the economy’s health, dropped from 6.4% to 5.9% year-over-year, or 0.1% month-over-month.

Retail sales continue upward trend

Retail sales increased for the third month in a row in July, suggesting consumer demand is gaining momentum. The increase was driven by the auto sector, which partially offset weaker department store sales. August will likely be strong as well, but it will be biased due to the recent natural disaster in Mexico.

Trade balance improves, driven by exports

While the trade balance showed a deficit in August, total exports showed the third month in a row of steady increases. The industrial sector is a large segment of the Mexican economy, so it benefits the economy as a whole.

Global activity indicator showed improvement in services

The indicator posted monthly improvement, led by increased activity in the services sector. This resonates with the improvement in retail sales, which shows consumer demand is definitely picking up.

Overall outlook is optimistic

The macroeconomic data released in September confirms that Mexico is on an upward trend. Previous weak spots (such as currency weakness) are less of a concern now, and the medium-term outlook for the market seems positive.