USDA FAS reports: Mexico's retail sector looks for a rebound

01/03/2011 12:19:47 AM
Tom Karst

The just-issued 14-page USDA FAS report on the Mexican retail sector is found here. Lots of chain specific numbers and economic analysis makes this report a must-read for any fresh produce exporter doing business in Mexico.

From the report.....

The retail sector has undergone a transformation over the past 15 years, beginning with Wal-Mart entering the market in association with Aurrera (Grupo Cifra) in 1997. Through its entrance into the Mexican supermarket sector, Wal-Mart has redefined the local retail industry, forcing major changes and creating a more modern, dynamic retail segment.

High quality transportation methods are available in Mexico from the U.S. border, throughout the country, and all the way to the Guatemalan border and beyond. While there is still a need to improve the handling of refrigerated and frozen products, more sophisticated practices in cold chain distribution are ensuring that American perishables reach their destinations with little loss along the way. Mexico’s expanding retail sector is opening new opportunities for U.S. products in the local market.

Executive Summary: 2009 was a historically poor year for the Mexican economy. The Mexican retail sector also suffered and experienced dips in sales, income and spending. For 2010, Mexico’s GDP is projected to grow by 5.1% helping the economy recover.

This increase reflects consumer confidence and spending will surpass not only 2009 levels, but also the historically high levels recorded in 2008. Additionally, foreign direct investment for 2010 will surpassed that of 2008, bringing in much needed capital into Mexico. In 2010, Mexican imports increased by 13% and exports by 36%, as reported by the American Chamber of Commerce (AMCHAM) in Mexico2. I

nflation is expected to close at 4.32%, while the exchange rate has decreased to an average 12.27 pesos per dollar in 2010, from 13.07 pesos per dollar in 2009, and 13.83 pesos per dollar in 2008. Remittances are also on the rise, contributing up to 4% of Mexico’s GDP. Overall, this upswing in the economy is being reflected in Mexico’s expanding retail sector which is opening new opportunities for U.S. products in the local market.

Section I. Market Summary The retail sector has undergone a transformation over the past 15 years, beginning with Wal-Mart entering the market in association with Aurrera (Grupo Cifra) in 1997.


Prev 1 2 3 Next All


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Join the conversation - sign up for FREE today!
FeedWind
Feedback Form