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

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

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

By comparison, high-end supermarkets such as Superama or City Market had very few or no new store openings in 2010. 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.

Unfortunately, retaliatory tariffs from Mexico resulting from the U.S.-Mexico cross border trucking dispute, have affected trade of many U.S. agricultural products destined to Mexico. These tariffs are reflected by higher prices at the point of sale, where the added costs are passed on to consumers.

While the deteriorating security situation is an ongoing threat, transportation companies such as Celadon are teaming up with the growing number of security specialists to ensure that commerce is not affected.

Celadon, with 150,000 border crossings per year, has taken measures to safeguard its presence in the NAFTA region. The company has installed surveillance cameras in all of its terminals and anti-theft tracking devises on trailers and tractors into Mexico.

With these types of measures Celadon, as well as other transportation companies, ensure deliveries are met and can recuperate merchandise and equipment if problems arise. An increase in both new store investments and retail sales demonstrates that retailers are pushing to grow their businesses in Mexico despite current security threats.

 Retail Outlets in Mexico ANTAD reported over 19,000 stores nationwide as of August, 2010. These stores include supermarkets, department stores, and “specialized” stores grouping pharmacies, office supply stores, and convenience stores among others.

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