Oxxo opens its first store in the US
Mexico’s convenience store giant Oxxo has opened its first store in the US.
The newest Oxxo, in Odessa, Texas, is part of the company’s aggressive push to enter new markets. In 2023, Femsa, Oxxo’s parent company, purchased KD Market, which has over 300 locations in the southern United States.
Femsa has not provided a timeline for opening other stores, but market analysts suggest it will begin converting KD Markets into Oxxos in the short term.
“We are excited to be entering this new chapter in Oxxo’s history, and we are confident that consumers in the US will soon take to our unique brand,” said Eleazar Corona Chávez, director of Oxxo’s commercial expansion.
Founded in 1977 in Monterey, Nuevo Léon, it has grown exponentially over the decades, with thousands of stores spread across Mexico. The exact number of locations is not public knowledge, but in 2023, during a shareholder meeting, it was revealed that the number had surpassed 20,000—with new locations opening every day.
In the early 2000s, Oxxo began to look beyond Mexico, recognizing the potential for growth in other Latin American markets.
Its first major international push was into Colombia in 2009. Colombia’s growing economy and urban population presented a ripe opportunity for Oxxo to replicate its successful model. The chain quickly gained traction by offering competitive prices, a familiar shopping experience, and a focus on convenience. Today, Oxxo is one of Colombia’s leading convenience store chains, with hundreds of locations nationwide.
Following its success in Colombia, Oxxo turned its attention to Chile, entering the market in 2015, citing a stable domestic economy and high urbanization rate, before setting its sights on Latin America’s largest economy in 2020 — Brazil. The chain has been steadily growing its footprint in Brazil, focused, but not entirely limited to, urban centers and high-traffic areas.
One of the factors driving Oxxo’s expansion is its ability to innovate and adapt. The chain has embraced technology to enhance the customer experience, offering mobile payments, water and electric power bill payments, and financial services through strategic alliances with Visa and Western Union.
This diversification has allowed Oxxo to become more than just a convenience store; it is now a one-stop shop for various daily needs, including Amazon pickup spots at select locations.
Oxxos growth has also been fueled by its parent company, Femsa, which provides the financial backing and strategic vision necessary for large-scale expansion. Femsa’s expertise in logistics and distribution has enabled Oxxo to maintain efficient operations even as it scales up in new markets.
But just like in Latin American markets, it has already expanded. If Oxxo hopes to carve a space out for itself among the giants of the United States’s convenience retail, including 7-Eleven and Circle K, shrewd business tactics, not just heavy investment, will be necessary.
One advantage Oxxo already has out of the gate in the United States is its high level of brand recognition, especially among its millions of Latin American migrants and folks who know and love the chain from their trips to Mexico.
However, the chain has not been without controversy. It has displaced thousands of independent mom-and-pop shops (known as tienditas) that used to dot just about every street corner in Mexico.
Labor practices at Oxxo have also come under scrutiny. Despite being one of the largest employers in Mexico and other countries, the company has faced criticism for its treatment of workers. Reports of long working hours, low wages, and limited benefits have sparked debates about the fairness of Oxxo’s employment policies.
Oxxo’s product offerings have also drawn criticism, particularly related to public health. The chain’s shelves are heavily stocked with processed snacks, sugary beverages, and alcohol, which are often linked to chronic health conditions such as obesity and diabetes. In countries like Mexico, where these health issues are prevalent, Oxxo’s emphasis on unhealthy food options has been seen as exacerbating the problem.
Senior Editor Carlos Rosado van der Gracht is a Mexican expedition/Canadian photographer, adventure leader, and PhD candidate. Born in Mérida, Carlos holds multimedia, philosophy, and translation degrees from universities in Mexico, Canada and Norway.
