A OXXO Gas station in Monterrey, Nuevo León. An OXXO Gas station in Monterrey, Nuevo León.

OXXO stores’ owner to invest US $1.3 billion

Femsa also predicts double-digit growth across all its divisions

The company that operates the OXXO convenience store chain, Mexico’s largest, will invest about US $1.3 billion this year, despite economic uncertainty.

Fomento Económico Mexicano, known as Femsa, intends to proceed with caution but expects to continue investing in new gas stations and stores, and predicts double-digit growth in all its divisions.

This despite external factors such as the renegotiation of the North American Free Trade Agreement and exchange rate volatility, corporate director Eduardo Padilla told analysts in a conference call.

He said Femsa will continue with its strategy of opening 50 new OXXO Gas station-convenience stores a year.

About $770 million of this year’s capital expenditures, which will be approximately the same as last year, will be in Coca-Cola Femsa, the world’s largest Coca-Cola bottler.

CEO Carlos Salazar Lomelín said Femsa continues to see a favorable consumer environment in spite of external dynamics such as the likelihood of higher inflation.

In its fourth-quarter financial report the company said it opened 1,164 new OXXO stores in 2016, closing the year with 15,225 in total.

Source: Forbes (sp)

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