Chedraui's Supercitos Bet: Doubling Down on Proximity Amid Macro Headwinds
Grocery leader reiterates guidance as Mexican consumer softens and U.S. immigration enforcement pressures traffic, leaning on expense control and small-format expansion.
CHDRAUIB.MX · Earnings Call · 2026-04-22
Mexico: Outperforming a Soft Consumer
Chedraui's first-quarter 2026 results, reported on April 22, revealed a company leaning into its strengths amid a challenging macro backdrop. Consolidated sales fell 6.2% to MXN 6,796 million, but that was almost entirely the result of a 14.3% appreciation of the Mexican peso against the U.S. dollar when consolidating Chedraui USA. Stripping out the currency effect, Mexico delivered total sales growth of 6.3%, with same-store sales (SSS) up 2.1% — outperforming ANTAD's self-service segment by 73 basis points for a 23rd consecutive quarter. The outperformance was especially notable given the softness in the Southeast, where consumer spending has weakened and the informal sector remains a fierce competitor. "The buying power of the consumer is weaker than we had in the past," CEO Jose Antonio Chedraui acknowledged, yet the company's disciplined approach to inventory and promotions allowed it to hold its Mexico EBITDA margin at 9.5% despite higher labor costs. Expense control remained a central theme, with the company emphasizing expense control programs across both countries. E-commerce penetration rose 76 basis points to 4.2%, helped by third-party partnerships like Rappi Turbo and Uber Eats.U.S.: Immigration Enforcement and RCDC Efficiencies
In the United States, the story was more mixed. Chedraui USA saw same-store sales decline 2.8% in dollar terms, driven by lower transactions at El Super and Fiesta as stricter enforcement of immigration policy kept some shoppers away. Smart & Final, while also soft in Southern California, improved its EBITDA margin by 135 basis points to 7.3% thanks to efficiencies from the Rancho Cucamonga Distribution Center (RCDC). Overall, the U.S. business managed a 21 basis point EBITDA margin expansion to 7.7%, a testament to "rigorous expense management." Carlos Matas, CEO of Chedraui USA, expressed cautious optimism: "we've seen some improvement in traffic in April." That signals hope that the worst of the immigration drag may be behind the company. The RCDC remains a key lever; as Matas noted, the company will “never stop looking for efficiencies in our supply chain” — Carlos Matas, CEO of Chedraui USA · 2026-04-22. In prior calls, he had already highlighted that “our RCDC operation is making improvements every day” — Carlos Matas, CEO of Chedraui USA · 2025-10-22, and that trajectory continues to support margins.Capital Allocation: Betting on Supercitos
Perhaps the most notable development was the sharp acceleration in capital spending. CapEx totaled MXN 2,196 million, up 63.8% year-on-year and representing 3.1% of sales. The company opened 1 Tiendas Chedraui and 18 Supercitos during the quarter, but the pipeline is far larger. CEO Chedraui outlined an ambitious target:That would represent a doubling of the small-format store base, tapping into a market where more than 50% of retail sales still flow through the informal sector — a direct competitor for Supercitos. The company's net cash position also improved, with net cash-to-EBITDA turning to -0.10x from net debt of 0.03x a year earlier, providing ample dry powder for this organic expansion and potential M&A. This investment in Supercitos is a clear strategic bet that proximity retail will gain share as consumers trade down from traditional supermarkets. The quarterly results echo themes from prior calls. In February, Antonio had reiterated that “we believe that we can increase our sales penetration closer to 5% this year” — Jose Antonio Chedraui Eguia, CEO · 2026-02-25 for e-commerce, and Carlos had highlighted ongoing RCDC progress. Today's call reinforces that the company is sticking to its guidance despite headwinds, leaning on expense discipline and seeing green shoots in April traffic. With the World Cup and a weaker comparison base in Q2, management remains confident of hitting its full-year targets.We believe that we would be close to 1,000 Supercitos in the coming year. ... we can double the number in the coming years.