Background on Grupo Comercial Chedraui
Grupo Comercial Chedraui, a prominent Mexican retail chain, has acknowledged a period of consumer spending weakness in Mexico, with the southeast region experiencing a more significant impact. This region had previously shown robust growth due to large-scale projects like the Tren Maya and the new Dos Bocas refinery in Tabasco.
Antonio Chedraui’s Perspective
According to Antonio Chedraui, the company’s CEO, the decline in consumer spending is primarily due to a combination of factors including salary increases and the foundation built through previous investments in infrastructure projects.
Strategies Amidst Declining Spending
Despite the challenging environment, Chedraui remains optimistic about a short-term recovery and continues to focus on expanding their market share and maintaining growth in existing stores.
- Market Share Growth: Chedraui reported a twentieth consecutive quarter of market share increase in Mexico, although the exact percentage was not disclosed.
- Same-Store Sales Growth: The company reported a 3.7% growth in same-store sales, surpassing the 2.5% registered by the ANTAD (Asociación Nacional de Tiendas de Autoservicio y Departamentales) sector.
Chedraui attributes their operational model to their ability to maintain profitability even with reduced consumer spending. They emphasize the importance of capturing market share and sustaining sales growth in comparable stores to mitigate the impact of this situation.
Future Projections
Chedraui projects to meet its growth target for 2025, with plans to expand their operations. They aim to open 130 Super Che stores, 5 Chedraui stores, 5 Súper Chedraui stores, and 130 Supercitos stores.
Currently, the company operates 586 units across various formats in Mexico.
Rising Labor Costs
Chedraui has experienced an increase in labor costs due to a 12% rise in the minimum wage implemented at the beginning of 2025.
Operating expenses, excluding depreciation and amortization, increased by 12.4% in the second quarter of the year compared to the same period in 2024, reaching 11,282 million pesos—equivalent to 15.3% of consolidated sales.
Chedraui’s CEO, Antonio Chedraui, expects further annual salary increases of 10% to 12%, citing the Mexican government’s commitment to wage hikes.
Key Questions and Answers
- What is causing the decline in consumer spending in Mexico? The primary factors are salary increases and the foundation built through previous investments in infrastructure projects.
- How is Chedraui responding to this decline? The company remains optimistic about a short-term recovery and continues to focus on expanding market share and maintaining growth in existing stores.
- What are Chedraui’s future expansion plans? The company aims to open 130 Super Che stores, 5 Chedraui stores, 5 Súper Chedraui stores, and 130 Supercitos stores.
- How are rising labor costs affecting Chedraui? The 12% increase in the minimum wage has led to higher labor costs, contributing to a 12.4% rise in operating expenses (excluding depreciation and amortization) in the second quarter of 2025.
