Grupo Comercial Chedraui Sees Steady Gain in Market Share
Mexico-based food retailer Grupo Comercial Chedraui has released its 2023 fourth- quarter results. The company experienced 8.7% same-store sales growth in Mexico, along with an 18.6% increase in consolidated net income. Grupo Comercial Chedraui also saw 7.3% growth in consolidated EBITDA.
Along with supermarkets in Mexico, Grupo Comercial Chedraui has a presence in the United States. Its Chedraui USA subsidiary operates more than 300 stores in California, Arizona, Nevada, New Mexico and Texas. The Los Angeles-based company’s banners include El Super, Fiesta Mart, and Smart & Final.
[RELATED: Chedraui Boosts Self-Checkout Capability in Mexico]
In response to its Q4 results, Grupo Comercial Chedraui CEO Antonio Chedraui said: "Our customer-centric strategy continues to deliver positive results. During the fourth quarter and throughout 2023, both in Mexico and the United States, we achieved our guidance and continued to grow organically with the opening of 57 stores in Mexico and three in the United States, totaling 460 and 379 stores, respectively.”
Chedraui continued: “For 2023 consolidated EBITDA, our operating leverage, expense efficiencies, and improvement in inventory management and promotions drove an expansion of 60 bps, achieving a margin on sales of 8.9%. These combined efforts resulted in a continued increase in Chedraui's profitability; thus, at the end of 2023, we achieved a ROE [return on equity] of 18.6%, 130 bps higher than in 2022.”
The cash generation in the company’s operations in both countries allowed it to end with a net cash position at the end of 2023 of $5,553 million pesos, or approximately US $328,370.
Grupo Comercial Chedraui operates approximately 460 locations in Mexico that include banners Tienda Chedraui, Super Chedraui, Súper Che, Supercito and Tiendas Arteli. In the United States, the company operates a network of almost 380 supermarkets under the Smart & Final, El Super, and Fiesta banners. Grupo Comercial Chedraui is No. 48 on The PG 100, Progressive Grocer’s 2023 list of the the top food and consumables retailers in North America.
