Mexico: Chedraui seeks to gain ground on rivals
Running price campaign to attract customers
Chedraui will run an aggressive price campaign to attract customers who may not be happy with the changes set to take place following Soriana's acquisition of CCM stores. Chedraui is happy to make acquisitions itself, perhaps with other small chains, if they are at the right price and in the right location and potentially to increase its debt levels to do so.
Q4 driven by US growth
Chedraui reported same store sales growth of +2.9% in its Mexican stores in Q4 2014, and +5.2% in dollar terms in its US stores. Total revenue for the quarter was up 10.2%, driven by the opening of five stores in Mexico and four in the US over the past year. With weaker comparatives in the past couple of years, and optimism surrounding the Mexican economy, Chedraui expects similarly strong performance in 2015, with same store sales in Mexico coming in between 3.5% and 4.5%, and +1.5%-+2.5% for the USA
Source: retailanalysis.igd.com
