Grupo Coppel will invest 12 billion pesos (about 710 million dollars) in 2024 to expand its presence in the Mexican retail market. The expansion plan includes renovating the company's 1,782 stores and opening more than 100 locations nationwide, which represents a 6% growth over its store portfolio.

According to data from SiiLA Market Analytics, Grupo Coppel's stores in the shopping centers of Mexico's main retail markets cover more than 85,000 square meters. In the last year alone, the company's stores' gross leasable area (GLA) increased by 28%, demonstrating solid growth and a significant presence in the retail sector.

The expansion of the Sinaloa-based company will have significant implications not only in the retail market, as it will strengthen its positioning and attract a larger number of consumers, but also in the industrial market, where it operates in more than 170,000 square meters of space focused on logistics and product distribution. This approach includes implementing advanced technology and process reengineering to improve the efficiency of its last-mile operations.

It is important to note that Coppel has a robust logistics network consisting of primary and secondary distribution centers and a delivery strategy that relies on its own fleet and strategic allies. Since 2020, as part of a commercial strategy that gained relevance during the pandemic, the company has focused its efforts on optimizing delivery times and costs, primarily through the digitalization of its sales channels and the increase in the percentage of online sales. In this regard, the company has announced that, in addition to the 12 billion pesos it will invest this year, it will allocate 6 billion pesos (up to 355 million dollars) over the next three years to strengthen its digital infrastructure. This is in a context where Coppel's stores receive about two million customers a day, while its digital platforms are visited daily by more than three million people.

Retail and Sustainability

Grupo Coppel is strategic in designing and configuring shopping centers in Mexico. In terms of occupied GLA, the firm is the thirteenth most crucial anchor store tenant, which is fundamental to attracting customer traffic and generating synergies with other establishments, thus boosting commercial activity and the success of the shopping centers in which they are located. SiiLA data indicates that Coppel's anchor stores represent 51% of the company's retail portfolio, followed by megastores (24%), large and medium-sized stores (21%), as well as small and mini stores (4%).

Coppel's investment goes beyond expanding its department store chain, specializing in clothing, footwear, and accessories. According to the company, sustainability will be a crucial aspect of the remodeling and opening of stores. By the end of this year, it plans to have at least 700 electric and hybrid vehicles and up to 700 properties with solar panels. These measures are part of its goal to reduce its carbon footprint by 30% in the next decade, which translates into a reduction of 33,000 tons of carbon emissions, equivalent to planting 540,000 trees. In addition, the company projects that by 2030, a significant percentage of its last-mile vehicles will be electric, further contributing to emission reduction.

Coppel's sustainable plans imply potential commercial benefits beyond reflecting a commitment to the environment and corporate social responsibility practices. Firstly, sustainable practices reduce long-term operational costs, especially regarding energy consumption and waste management. Moreover, regarding branding, sustainability is a strategy to attract ecologically conscious consumers and open business opportunities by strengthening sales and brand loyalty. Lastly, as a nationally recognized company, Coppel's sustainable strategy can increase competitiveness in the retail sector by setting an industry standard and encouraging other market players to adopt similar approaches.

To learn more about this and other topics related to Mexico's retail market, explore SiiLA REsource or contact us at contacto@siila.com.mx.