FEMSA Delivers Strong Q2 Performance: OXXO's Revival and Strategic Shifts
The latest quarterly update from FEMSA has brought forth a compelling narrative of growth, strategic adjustments, and a renewed focus on customer centricity. In a conference call held on July 28, CEO José Antonio Fernández Garza presented a high-level overview of the company's performance in Q2 2026, highlighting key trends and strategic pillars that are expected to shape the future of FEMSA.
One of the most striking highlights from the quarter was the strong performance of OXXO Mexico, which delivered same-store sales growth close to double digits. Notably, traffic grew by a positive 2%, a first in eight quarters, driven partly by the World Cup's uplift but also reflecting the strategic adjustments made during the second half of last year. FEMSA estimates that at least 60% of this growth can be attributed to the World Cup, with Panini collectibles and consumption tied mainly to Mexico games in June contributing evenly.
However, beyond the temporary boost from the World Cup, signs are emerging that the changes made by FEMSA are taking hold. The company's renewed focus on customer centricity is expected to translate into stronger, sustained traffic, with key strategies including impulse sales, prepared food and coffee, daily and replenishment, and services or 'beyond trade.' This approach aims to put customers back at the center of operations, leveraging four strategic pillars.
The first pillar, impulse, focuses on optimizing price pack architecture and promotions to achieve competitive price points. FEMSA is also working to sharpen its assortment to include lower-cost alternatives in key categories where convenience had previously reduced competitiveness. Prepared food and coffee are also undergoing a transformation, with efforts centered around introducing better products, simplifying pricing, and improving execution.
The early results from these initiatives have been encouraging, particularly in the coffee category, which has seen healthy growth during the quarter. In addition, FEMSA is piloting targeted initiatives in coffee across a few regions, showing promising results compared to control stores where no changes were made. The company's focus on developing winning products in food service is also gaining momentum, with an emphasis on enhancing the overall food value proposition at OXXO.
Furthermore, FEMSA recognizes the significant opportunity presented by daily and replenishment sales, which currently holds a low market share in many categories relevant to this grocery shopping mission. The company plans to work closely with its existing supplier base and potentially expand it to restructure its assortment, including rethinking price pack architecture and evaluating the role of private label in certain categories.
Lastly, FEMSA's Spin platform has continued to make progress across key indicators of user growth, engagement, and transaction activity. This digitization of customers extends the company's value proposition beyond the store, further solidifying its strategic shift towards customer centricity.
