Changing Consumer Behavior at OXXO
Armando Novoa, Head of Corporate and Sustainability Affairs at OXXO, stated that consumer behavior is evolving. Although consumers now visit stores less frequently, they make purchases with a higher average ticket and avoid impulse buys. Novoa explained, “Nowadays, consumers are not making impulsive purchases but rather buying to meet a need with a slightly higher ticket.”
Understanding the Changing Consumer
Novoa emphasized that the challenge is to understand and listen to consumers who are increasingly seeking sustainable, high-quality products at competitive prices. He highlighted this during his participation in the F_Talk Summit, organized by Deloitte University and KM Zero, an organization promoting sustainability in the food industry.
Technology as an Anchor for OXXO
Despite these changes, Novoa believes technology is a “anchor” that has helped OXXO find new ways to understand consumers. Through its Retina Media platform, OXXO uses technology and in-store screens to connect with customers, displaying relevant information and promotions based on their profiles.
OXXO also invests in technology for logistical operations. Their 21 distribution centers employ AI-based systems that detect popular products in each store and automatically generate replenishment orders for the following day, ensuring product availability.
OXXO’s Extensive Reach and Services
Currently, OXXO operates over 24,000 stores across 1,200 municipalities in Mexico (out of a total of 2,478). With such a vast network, nearly anyone has an OXXO store within an 8-minute walk.
This extensive reach allows OXXO to go beyond the traditional convenience store model, where customers not only buy products but also pay bills, send and receive money, and pick up packages.
Loyalty Program and Consumer Connection
OXXO’s loyalty program, Spin Premia, has over 20 million members who receive benefits. This program also helps OXXO connect and understand consumer needs, according to Novoa.
Key Questions and Answers
- What changes are happening in consumer behavior at OXXO? Consumers visit stores less frequently but spend more per trip, avoiding impulse purchases and focusing on meeting specific needs.
- How is OXXO adapting to these changes? OXXO uses technology, such as Retina Media and AI-based systems, to understand and cater to evolving consumer preferences.
- What services does OXXO offer beyond traditional convenience stores? OXXO provides bill payment, money transfer, and package pickup services, expanding its role in the community.
- How does OXXO’s loyalty program, Spin Premia, contribute to understanding consumer needs? With over 20 million members, Spin Premia helps OXXO connect with and understand its customers’ preferences and requirements.
