Background on FEMSA and Bara
Fomento Económico Mexicano (FEMSA) is rapidly expanding its discount store chain, Bara, with plans to open approximately 235 new outlets in Mexico by the end of 2025. The company aims to double this number in the following two years.
José Antonio Fernández Carbajal, Director and President of FEMSA’s Board of Administration, stated, “We need to invest in a large set of teams to have the new Bara in place, which will essentially double our expansion rate from 235 stores planned for this year to more than double in the next two years.”
The expansion of Bara has been slower than expected due to FEMSA’s ongoing process of separating its convenience stores, OXXO. Although Bara and OXXO are distinct formats, they currently share the same administrative structure and systems. However, FEMSA is working to change this situation, which takes time.
Bara’s Growth Potential
According to Fernández Carbajal, “We believe there is room for thousands of Bara stores.” He did not provide an exact number, but emphasized that there will be thousands of Bara stores in Mexico.
The discount store segment is gaining momentum as more people recognize the value offered by this discount format, presenting a significant growth opportunity.
Recent Expansion Progress
During the first quarter, Bara doubled its store openings compared to the same period last year.
- In January-March 2024, Bara opened 31 units, bringing the total to 510 stores compared to 15 units reported in the same period of 2024.
- The same quarter in 2023 saw 12 openings.
“In Bara, we had a good start to the year in terms of expanding our store base, adding approximately double the number of stores during this quarter compared to last year and on track to add around 235 net new stores in 2025,” reported José Antonio Fernández Carbajal.
Strengthening Logistics Capabilities
With the recent opening of a new distribution center in Querétaro, FEMSA aims to enhance its logistical capabilities further.
