OXXO stores stand out for their innovative promotional strategies aimed at increasing traffic and sales. In particular, these stores sell high-turnover items such as beverages, snacks and cigarettes at competitive prices. How much are they growing, what is their strategy and what is their organization like?FEMSA opened 1,408 net OXXO stores in Mexico, Colombia, Chile and Peru during 2023. 

OXXO stores

The following is part of the company’s strategy:

• It has the ability to profitably implement its plans because of the size of the OXXO store chain.
• The company works with its suppliers to develop sales strategies such as differentiated promotions. 
• Its national and local marketing and promotional strategies are an effective sales generator.
• The organization has refined its ability to execute mixed promotions (multi-pack discounts or the sale of complementary products at a special price).
• It also implements targeted promotions to attract new customers, expanding offers in the grocery category in certain stores.

As of December 31, 2023, there are 21,970 OXXO stores in Mexico, 411 stores in Colombia, 343 stores in Chile, and 142 in Peru. 

Products

In Mexico, 63% of OXXO store customers are between 15 and 35 years old. Beer, cigarettes, soft drinks and other beverages and snacks continue to represent the main products in their sales. Previously, OXXO stores in Mexico only distributed beer brands produced and distributed by Heineken Mexico. However, following some modifications to the terms of its commercial relationship with Heineken and its new commercial relationship with Grupo Modelo in 2019, FEMSA now sells Grupo Modelo’s beer brands throughout Mexico. 

Leaders

About 23% of OXXO stores in Mexico have as their operators leaders who are responsible for all aspects of operation. Store leaders are commission agents and are not employees of FEMSA.Each store leader is the legal employer of the store personnel, which typically consists of six people per store who are not FEMSA employees. FEMSA constantly invests in operational personnel at each store in order to promote loyalty, customer service, as well as reduced staff turnover in the stores.