#Mexico #Mexico City #retail #Chedraui

Grupo Comercial Chedraui Sees Positive Growth in Q1 2026

Grupo Comercial Chedraui, S.A.B. de C.V., a leading retailer in Mexico, has reported its first-quarter results for 2026, illustrating remarkable growth despite challenging economic conditions. This announcement, made on April 21, 2026, includes notable figures that reflect the company's ability to maintain a competitive edge in the retail sector.

Key Highlights from Q1 2026

• - Same Store Sales Growth: Chedraui's same-store sales (SSS) grew by 2.1% in Mexico, outperforming the National Association of Self-Service and Department Stores (ANTAD) average by 73 basis points. This marks the twenty-third consecutive quarter of surpassing ANTAD’s growth rate.
• - Improved Profitability: The company's consolidated EBITDA margin saw a 22 basis points increase to reach 8.6%. Specifically, Chedraui Mexico maintained its EBITDA margin at 9.5%, consistent with the same period last year, showcasing operational efficiency.
• - Solid Net Income: Chedraui's net income for the quarter amounted to $1,583 million pesos, reflecting a net margin improvement of 16 basis points compared to previous figures. The overall sales floor expanded by 3.1%, with a notable 4.6% increase in Chedraui Mexico’s sales floor.
• - Debt Management: The net cash to EBITDA ratio at the end of Q1 2026 stood at -0.10x, compared to a net debt to EBITDA ratio of 0.03x in Q1 2025, indicating effective management of liabilities.

Strategic Focus Amidst Economic Challenges

Antonio Chedraui, the CEO, attributed the company's solid performance to a strategic focus on three key pillars: offering the lowest prices, providing the best assortment of products per store, and creating a unique shopping experience for customers. He noted that these strategies are crucial, especially given the softer economic climate Chedraui has encountered recently.

Chedraui emphasized appreciation in the Mexican peso compared to the U.S. dollar, which positively influenced the firm’s results by 14.3%. The CEO also highlighted operational excellence and strict expense control as major contributors to the EBITDA margin remaining stable at 9.5% in Mexico.

Challenges in Chedraui USA

Despite the positive performance in Mexico, Chedraui USA faced challenges, with same-store sales pressured by a drop in transactions. This was partly due to stricter immigration policies impacting customer traffic in areas where Chedraui USA operates. However, the EBITDA margin in Chedraui USA improved by 21 basis points to 7.7%, benefiting from cost-effectiveness initiatives developed through their Rancho Cucamonga Distribution Center.

Future Commitment to Growth

Looking ahead, Grupo Comercial Chedraui reasserts its commitment to expanding its operations in Mexico by planning to open 18 new Supercitos and a Chedraui store within the first quarter of 2026. The company’s robust financial position provides a solid foundation for future investments and growth.

In summary, Grupo Comercial Chedraui's Q1 2026 results exhibit a blend of strategic growth and resilience, underpinned by a notable improvement in profitability and continued operational focus. With a proactive approach to market dynamics, Chedraui is poised to navigate challenges and embrace opportunities in the retail landscape.