The Transformation of Mexican Retailing with NAFTA

Abstract

With the signing of the North American Free Trade Agreement, NAFTA, in 1994, the opening up of Mexican commercial sectors was completed. Thereafter, the growth of multinational supermarket chains accelerated and Mexican food distributors and retailers were forced into redefinition and regrouping, not only at company level but also at the regional–location level. The central and northern regions are witnessing increased efforts on the part of supermarket chains to capture local market segments, a process which imposes new demands on producers, wholesalers, and consumers. This article addresses the strategies of competition and collaboration of Mexican and US supermarket chains in the new regional context, and highlights the lack of Mexican public policy to help domestic retailers to compete effectively.

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