Bodega Aurrera Express: Key Characteristics
Wal-Mart de Mexico has experimented with different Bodega-style store concepts,from the larger sized Bodega Aurrera (41,000 sq.ft) to mid-size stores Mi Bodega(16,000 sq. ft) to the smallest of all Bodega Aurrera Express (4,000 sq. ft). All of the Bodega stores target primarily the +60% Mexican population that belongs tothe E to D+ socio economic segment (SES).In Mexico, each store serves a slightly different purpose, with Mi Bodega aimed atrural areas as a destination store while Express is intended to be an in-fill storetargeting convenience & closer-to-home consumption.This is
a fresh store and features an edited assortment with a focus on foodessentials. It resembles a soft discounter, given its assortment focus on brandedvs private labeled items.We can infer some interesting things about Bodega Aurrera Express' storeeconomics based on their highly-urbanized (high shopper density) real estatemodel:
Smaller ticket but more transactions.
This type of store calls forshoppers to visit it a few times a week while spending a short amount of money on each visit. In a sense, this is very similar to how the Bodegas'core shopper behaves in the formal trade.
A higher mix of consumables vs. discretionary/generalmerchandise items compared to a hypermarket could mean lowermargins. Private label helps offset this, but so far Bodega Express'private label selection seems to be limited (see section below). Due toinformal & open markets competition in Mexico perishables can be lowermargin than center store foods or GM - in the US this is just the opposite.
Lower operating costs.
The store runs with less than 15 people. Thishas one key implication for suppliers: retailers typically will try to shiftlabor as a way of reducing costs & improving efficiency.
Less capital intensive.
Lastly, as mentioned before, investment onsmaller stores is lower compared to big boxes, making it easier for aretailer to expand rapidly.These four characteristics tend to be true for most small-box discounters.Outside of the economic model, Bodega Express lacks some unique featurestypically associated with discounters/small boxes.
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