Just two months before celebrating its 46th anniversary, the Mexican daily consumer goods company is seeking to solidify its expansion into the neighboring north with the support of FEMSA.
Fomento Económico Mexicano (FEMSA) has managed to extend Oxxo to the corners of the world by opening nearly 2,000 branches in Brazil, Peru, Colombia, and Chile. With the purchase of convenience stores north of the Rio Grande, the company ensures its growth in the U.S. market.
On August 2nd, the multinational announced the acquisition of 249 establishments located primarily in Texas. The agreement was made with an American company known as Delek US Holdings, a corporation dedicated to oil refining. In this transaction, which totaled $385 million, Delek handed over its retail operations to the Mexican company.
FEMSA’s Director of Proximity and Health stated, “We have long had the ambition to enter the convenience and mobility sector in the United States, and this transaction represents the ideal way to take our first step into this attractive market.”
According to the official statement, 90% of the stores are located in the border state of Texas, while the rest are mainly in New Mexico. A small portion of the retail operations under the DK brand is located in Arkansas. Nearly all the locations operate a gas station, so the agreement also included a fuel transportation fleet.
The U.S. convenience and mobility market represents more than $850 billion and over 150,000 locations. According to the statement, “The Delek stores have the right attributes to be FEMSA’s first step into this market in terms of size, geographic location, and opportunities to experiment, test, and refine its retail-focused value proposition.”
Although this is one of the most significant advances in Oxxo’s expansion into the United States, it is not the first time a branch has opened beyond the border. Although it no longer exists, in 2019, one of the company’s first stores was located in Eagle Pass, Texas, adjacent to the city of Piedras Negras, Coahuila. Currently, Oxxo has a branch in Laredo, Texas, just eight blocks from the Rio Grande and the border with Mexico.
The Mexican chain, with more than 21,900 stores nationwide, could potentially have approximately 24,288 locations across the Americas, considering the acquisition of Delek US Holdings’ establishments. Although FEMSA also acquired Valora Holding in 2022, a European convenience store company with 2,751 points of sale, the brand’s image remained unchanged. Therefore, they are not technically part of Oxxo.