Mexican Retailer Plans to Take America
By George Anderson
Grupo Famsa SA sees most of its growth south of the border but it also intends to “aggressively” pursue expansion in the U.S., reports Bloomberg News.
Humberto Garza Valdez, CEO of the furniture and household-products retailer, said the company plans to open 10 new U.S. stores this year and another 10 in 2007.
The chain currently has 21 U.S.-based stores with locations in California, Nevada and Texas. It is looking at Arizona, Florida, Illinois and New York as potential new markets because of the growth of Hispanic populations in those states.
Eventually, the chain is looking to have 300 stores operating in the U.S.
The company recently purchased National Furniture, a five-store operation based in San Antonio.
It has also experimented with in-store kiosks in supermarkets catering to Hispanic consumers, such as Fiesta Mart and Carnival Food Stores. One kiosk located at a store in Plano does $100,000 a month in sales, according to Ted Caffey, FAMSA’s director for Texas, told the San Antonio Express-News.
Moderator’s Comment: Does its Mexican base give Grupo Famsa SA an advantage with Hispanic consumers in the U.S. including those with a country-of-origin
other than Mexico? Ultimately, do you see Grupo Famsa making the leap beyond Hispanic consumers to a wider audience? If yes, what will it take to be successful? –
George Anderson – Moderator
- Retailer to pursue ‘aggressive’ expansion – Bloomberg News/Miami Herald (free reg.
- Mexico’s top furniture retailer buys S.A. outfit – San Antonio