OXXO: The largest convenience store chain in Latin America
A towering example of growth and innovation.
From a substantial expansion of its store count to pioneering customer service technologies, this convenience store chain has not just increased its footprint but has also redefined the shopping experience.
Store growth and sales
Three years ago, OXXO had 19,330 stores, with 250 outside Mexico.
By the third quarter of 2023, there were 22,352 OXXO stores.
Store count grew by 15% over three years.
As of 2019, Proximidad Américas recorded sales of nearly 185 billion Mexican pesos.
In 2023, sales are projected to exceed 280 billion Mexican pesos.
There is a 6.6% increase in average spending per customer.
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Innovation and services
OXXO was testing automated branches, micro-markets, and home delivery services.
They were considering leveraging their infrastructure for a fintech venture.
Mi OXXO, a delivery platform, offers a range wider than convenience store products, resembling a full supermarket.
Marketing and loyalty programs
Over 28% of store sales in Mexico are linked to the Spin Premia loyalty program.
Spin Premia has nearly 17 million active users, up from 13.6 million a year ago.
Users of Spin Premia spend "significantly more" than other customers.
Femsa is working on a "retail media network" to sell targeted advertising in stores.
They are testing facial recognition technology for personalized in-store promotions.
Advertisements may also follow customers within the Spin Premia app.
Expansion and diversification
Potential growth for Andatti and O’Sabor as independent brands.
New store formats are categorized for specific locations and purposes, such as 'Office Workers' or 'Neighborhood' stores.
Femsa aims to expand into apartments, universities, office buildings, and companies.
Operational aspects
An OXXO store employs, on average, seven people.
Operational expenses rose by 26.7% in the last quarter, exceeding revenue growth.
Consumer behavior
Growth is partly driven by “gatherings that involve drinking alcohol”, which include the sale of beer, snacks, and other types of alcoholic beverages and liquors (a category in which OXXO has been growing for some years).
