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COFECE releases market study on food and beverage sector

The structure of the modern channel is concentrated among a few players: In the warehouse, supermarket, hypermarket and megamarket (WSHM) formats, only three companies have a national presence. In the areas which have only one company present, Walmart is the brand present 87% of the time. In some regions, there is not enough competitive pressure for WSHM format stores: Consumers buy from the closest stores to reduce costs and travel time, so competition in the modern channel is local. Two out of 10 Walmart WSHM stores have no competitors in their area of influence. Moreover, in undeveloped areas, almost half of Walmart s WSHM stores have no competitors.

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