Coppel and Home Depot have each come forward with plans to expand their retail operations in Mexico this year.
Grupo Coppel announced on Monday its aim to open 100 new stores in Mexico “in its different formats” and to reduce its environmental footprint by installing solar panels at more than 700 stores by the end of 2024.
To accomplish this, Coppel — which currently has 1,782 stores in Mexico — said it plans to invest more than 12 billion pesos (US $724.3 million) this year.
The Mexican retailer, founded in 1941 and headquartered in Culiacán, Sinaloa, sells appliances, electronics, furniture, shoes and clothing, and also operates a banking arm.
In a separate announcement on Monday, Home Depot said it will invest 2.86 billion pesos (US $172.6 million) in Mexico in 2024 and that it plans to open 12 more stores over the next few years to reach 150 total in the country.
The largest home improvement retailer in Mexico, as well as in the United States, also said it will be expanding its product offerings in Mexico, particularly for furniture, decorations and pet supplies. Home Depot was founded in 1978 in Marietta, Georgia.
Together, the total amount the two retail chains plan to invest in Mexico is 14.86 billion pesos (US $897.6 million).
Coppel, owned by the billionaire Coppel family, also said it would be remodeling some of its current stores and investing an additional 6 billion pesos (US $362.2 million) over the next three years to enhance its digital services.
Coppel said its actions will create 8,000 new jobs, adding to the 120,000 positions it currently has, making it a top-10 job creator in Mexico.
“Our decision seeks to endorse a double commitment: firstly, to serve our customers better, so that their experience in physical stores and across our digital channels is more satisfactory every day, and also to redouble our commitment to the environment,” said Agustín Coppel Luken, president of the board and general director of the company.
Coppel officials said installing solar panels at some 700 properties will reduce the company’s carbon emissions by 33,000 tons, equivalent to planting 540,000 trees. Coppel also plans to add more electric and hybrid vehicles to its transportation fleet.
Home Depot noted that its new investment will send the company past 50 billion pesos (US $3.02 billion in today’s currency market) invested in Mexico since it arrived in the country in 2001.
“We are very excited about the growth opportunities we see for 2024, after we managed to grow in a year of moderation and great challenges,” said José “Pepe” Rodríguez, the president of Home Depot’s operations in Mexico.
“With this, we will celebrate 22 consecutive years of growth in Mexico,” he continued. “The new investment plan will allow us to continue gaining market share, reaffirm our commitment to offering the best experience to our customers, develop capabilities, promote our interconnected retail approach and accelerate our geographic expansion in the country.”
This week’s dual announcements slightly echo what happened in 2020, when Coppel and Home Depot each announced significant investment plans for Mexico within a few months of one another.
