April 23, 20 - 12:13 pm - LABS

Mexican grocery chain Chedraui adapts plans to grow online

In a conference call about financial results for the first quarter, Grupo Chedraui, a big supermarket chain in Mexico, indicated that some of the changes it has seen with the contingency in terms of consumption patterns will continue and that the company is focusing on develop these capabilities faster.

The company was planning to invest nearly 2.4 billion pesos, which represents around 2 percent of its sales, with the opening of 30 new units. Given the pandemic, Antonio Chedraui Eguía, CEO of the firm, indicated that the amount will probably be smaller, according to a report by Milenio.

10% of sales in some Chedraui’s shops are made online. Photo: Shutterstock

“We don’t see consumers going back to traditional business. The online part will continue to grow in the future, we need to be ready,” said Antonio Chedraui. Despite this, the omnichannel and openings projects will continue. “We will be able to reduce Capex without affecting our growth in all investments for new stores and technology,” he said. 

The executive pointed out that in some regions (mainly in the metropolitan area) online purchases represent around 10 percent of sales. The figure is well above the national average, which estimates that digital purchases represent around 2 percent of supermarket sales in the country. 

Of these sales, nearly 60 percent comes from its own e-commerce platform; meanwhile, 40 percent is by delivery platforms such as Rappi or Uber.