Will Oxxo Become a Supermarket? The Company Makes Tests to Sell Fruits, Vegetables and Meats

The COVID-19 pandemic has impacted Oxxo's operations, resulting in temporary closures and a contraction in the number of stores. Despite these challenges, Oxxo remains a significant player in the Mexican retail market, attracting around 14 million shoppers daily. Femsa, the parent company of Oxxo, recognizes the importance of stabilizing the Mexican economy before considering large-scale reinvestments or store remodelings. While the company plans to expand its business in Latin America, it will cautiously evaluate the success of the Oxxo Súper concept and potentially expand it gradually. Oxxo's competitive advantage lies in its wide customer base, making it an attractive option for customers seeking convenience and a diverse product range. 

However, Oxxo faces competition from larger retailers like Walmart and Soriana, who aggressively target consumers with low prices. Additionally, the pandemic's economic impact has led to increased price sensitivity among Mexican families, potentially favoring alternative products and brands. The implementation of initiatives such as the reform on food labeling and restrictions on the sale of sugary drinks to minors in certain regions further challenge the sales of carbonated beverages and "junk food" products. Oxxo, therefore, needs to carefully navigate these dynamics and consider market conditions and consumer preferences in its expansion plans.