Food Retail Industry In Mexico - PEST Framework Analysis

Supermarkets and department stores, in Mexico, continue to provide exporters worldwide with the best points-of-sale. There are approximately 1,930 retail stores in Mexico selling food and beverages, a figure that includes outlets for major retail chains and government stores, but excludes convenience and small family stores. The major retailers are developing increasingly sophisticated distribution systems. However in the case of frozen foods and perishables, retail stores still depend heavily on local distributors.

Traditional retail stores ("mom and pop" stores) are a large market segment, but are not yet a viable option for imported products. Traditional retail stores serve a large number of Mexican consumers but offer less potential for selling imported products. Similarly, outdoor markets (tianguis) sell few import products, except for nuts and deciduous fruits.

Aruvian Research analyzes the Food Retail Industry in Mexico in a PEST Framework Analysis. A PEST analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarizing the external environment in which a business operates.