Chedraui seeks to compete in the segment of price clubs once morest Costco and Sam’s and commitment to grow Smart & Final in Mexico, where acquisitions are not ruled out.
“We will use the cash flow to grow faster, we think that we will be able to execute very well the integration of our past acquisitions and at the moment we are evolving those opportunities in Mexico and in the United States, we think we will be able to grow faster than we projectthe guide shows organic growth for the year, but we are open to acquisitions and we are looking at possibilities in Mexico”, he said in a conference with analysts Antonio Chedraui EguiaCEO of Chedraui Commercial Group.
During the fourth quarter of 2021, the Chedraui commercial chain reported an operating flow (EBITDA) of 4 thousand 617 million pesosan increase of 65.5 percent per yeardriven by the integration of Smart & Final who bought in May 2021.
Smart & Final operates 254 stores under two brands: Smart & Final and Smart & Final Extra!, in California, Arizona and Nevada. In addition to 17 additional stores in northwestern Mexico, Baja California and Sonora, through a joint venture with Grupo Calimax.
Smart & Final is a price club chain, but unlike Costco and Sam’s of Walmart de México, it is free, that is, without membership.
“We already have 17 stores, and there was an opening that just happened, and we believe there is a great opportunity for this format in Mexicoand we do believe that we will focus on expanding this format in other regions, because it complements our offer very well,” said Chedraui Eguía.
He added that 30 percent of the income from Smart&Final are own brandso they do not rule out adding said brand and products to the Chedraui shelves.
