New Retailing research report from Euromonitor International is now available from Fast Market Research
[USPRwire, Wed Jan 21 2015] After grocery retailers showed a positive growth rate of 8% in 2012, they only grew 3% in both 2013 and 2014. This is a result of the Mexican economy slowdown that in 2013 was influenced by several factors, including the impact of the US slowdown and the structural reforms that the government of Enrique Peña Nieto started to implement during the year touching sensitive areas of the Mexican economy and society. Regarding 2014, a new tax on high caloric foods and beverages (8% on foods, MXN per litre on drinks) increased the price of a number of grocery categories, including carbonates, pastries, breakfast cereals, biscuits, snacks and confectionery, among others. These price raises led consumers to adjust their budgets impacting not only the taxed products but the grocery consumption in general.
Competitive Landscape
Wal-Mart de México SAB de CV led grocery retailers with a 17% value share in 2014. It manages three formats in grocery retailers, covering the needs of low-income consumers (Bodega Aurrera with its Express and Mi Bodega variants), middle-income earners (Walmart Supercenter) and affluent consumers (Superama). The company does not have convenience sites/outlets, although its latest discounter format, Bodega Aurrera Express, does compete directly with convenience stores.
It is still uncertain how long the economic slowdown will continue to impact consumption in Mexico. Some analysts talk about an economic recovery during the second half of 2014, while others remain more pessimistic. Something similar happens with the predictions of the next couple of years. While the government predicted GDP growth rates of 4.7% in 2015 to 5.3% 2018 if the new “structural reforms” were approved, some analysts and companies are sceptical and cautious in their forecasts, with Euromonitor International estimating forecast growth rates at approximately 4% per year through the forecast period. As the impacts of the tax increase on high calorie products are absorbed, it is expected that growth in grocery retailers will rebound.
Report Overview
Discover the latest market trends and uncover sources of future market growth for the Grocery Retailers industry in Mexico with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Grocery Retailers industry in Mexico, our research will save you time and money while empowering you to make informed, profitable decisions.
The Grocery Retailers in Mexico market research report includes:
* Analysis of key supply-side and demand trends
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