Summit Notebook

Exclusive outtakes from industry leaders

Mexican retailer Soriana bets for brighter 2010

May 7, 2009

 High unemployment rates, declining remittances from Mexicans living abroad, an economic slowdown and contracting consumption is not boding well for Mexican retailers. This year is no exception as the country’s leading supermarket chains struggle to keep customers happy, offering anything from stamps to buy German cuttlery sets to cooking classes for housewives pulling their hair wondering what to prepare for lunch next. 
    Monterrey-based Soriana, Mexico’s No. 2 retailer, knows a thing or two about sailing in choppy waters. After an ambitious acquisition of 200 stores from a smaller rival in 2007, which boosted its presence across the country, the company faced tight liquidity to meet debt payments last year.
    But Soriana has moved fast to cut costs and lighten the weight to face more hard times in 2009. Chief Financial Officer Aurelio Adan told the Reuters Latin American Investment Summit that Soriana’s same-store sales will be flat this year but it will generate enough cash flow to cut its debt by over 20 percent.
    Adan expects to turn the page in 2010 and resume Soriana’s strong growth with the opening of 40 stores.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •