Reference no: EM13719107

STRATEGIC DIRECTION

Wal­Mart de México is expected to continue leading modern grocery retailers throughout the forecast period as well as having a substantial influence on Mexico's packaged food industry. Wal­Mart continues to experience strong growth thanks to its strategy of relentless expansion and consumer segmentation. Bodega Aurrera, Wal­Mart's discounters chain, offers a wide variety of products in small packaging sizes at very low prices, catering mainly to Mexico's many low­income consumers, the majority of whom would otherwise shop at independent small grocers, where they would be faced with a much more limited range of products. Wal­Mart is developing a massive private label portfolio in an attempt to keep unit prices down for low­income and middle­income Mexican consumers. Private label is becoming increasingly popular in Mexico as the country faces very difficult economic times, a situation which is leading many consumers to prefer to save money on staples so that they have more to spend on affordable. Wal­Mart's supermarkets chain Superama caters to higher­income consumers, offering an ever expanding portfolio of health food items, gourmet food, fine wine and other types of premium products. These strategies have so far been extremely successful and are expected to continue performing very well throughout the forecast period

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