Even though during the period of confinement the Oxxo and 7-Eleven stores remained open, the truth is that things for these brands did not exactly come out with rising numbers.
It is enough to acknowledge the complications that Oxxo has registered in recent months, which have forced it, even, to renegotiate the leasing of many of its establishments.
According to a recent report delivered by Bloomberg, Femsa, the owner of Oxxo, would have asked the owners to reduce the rent of these establishments, under the argument of the downward blow that their sales have received.
« In the face of this health emergency, we have been declared essential activity, » Femsa reported in an email, while stressing that « in recent weeks, customer traffic in the industry in general has decreased. In our stores it has been reduced by more than 25 percent on average, although it varies greatly depending on the area. «
In general terms, the brand’s income and sales have been affected by containment measures, the shortage of products such as beer, and the implementation of the Dry Law in many states of the country.
The situation has already had significant impacts for the firm. « We have had to close some shifts or even stores, » Femsa said in the statement. « In the same sense as the rest of the retail sector, we have seen the need to make temporary financial and operational adjustments. »
In the shadow of the pandemic
The truth is that although the containment measures are beginning to relax in various states of the country, the challenge for these brands is far from being overcome.
And it is that although it is necessary and a priority to revive the economy, the figures in the country do not seem to yield, at least, to the dimensions that many expect.
The volatility of the numbers around the epidemic have led many entities in the country to take new measures around the health emergency.
Such is the case of Tamaulipas, a state that, due to an increase in the number of infections, has indicated that self-service stores and other establishments, including Oxxo and 7-Eleven, will close during the weekend.
At a press conference, this afternoon the entity’s Health Secretary, Gloria Molona Gamboa, reported that the rate of infections is high in Tamaulipas, so an emerging plan will be launched in the municipalities with the most infections (Reynosa, Nuevo Laredo, Ciudad Victoria, Matamoros, Altamira, Río Bravo, Tampico and Madero), where only businesses considered essential can be opened.
In addition, the closure of stores such as Oxxo and 7-Eleven, as well as supermarkets and wholesale stores, was announced on Saturday, July 4 and Sunday, July 5, which will also not allow the installation of street markets or street markets in the cities mentioned.
Retail in Mexico
Although we are only talking about a couple of days of suspension of activities, for Oxxo and 7-Eleven it represents millionaire losses that come at a time when the sector suffers.
Estimates provided by the National Association of Self-Service and Department Stores (ANTAD) give a first look at what has already been stopped earning.
According to this association, sales in nominal terms fell in stores equal (those that have more than one year of operation) by 22.9 percent during the month of April, compared to what was recorded the same month but last year .
This translates into a significant drop derived from the closure in department stores and a decrease in traffic from other units such as supermarkets.
If you read the local stores, which consider the stores opened during the last twelve months, the sales slump was calculated at 19.9 percent.
In pesos and cents, accumulated sales during the fourth month of this year, reached 396.6 million pesos, less than the 401.2 million pesos registered for the same month of 2019.
It is important to mention that the Antad is made up of more than more than 62 thousand stores and the total sales area of these establishments amounts to more than 23 million square meters. Among its affiliated stores, brands such as 7-Eleven, Oxxo, Chedraui, Soriana, La Comer, Coppel, Liverpool, Sears, and the Palacio de Hierro stand out.
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