Discount Retail Chain Tiendas 3B, is a NYSE listed proximity discount chain that has managed to gain a foothold in key regions such as Mexico City, State of Mexico, Puebla, Veracruz, and Michoacán, covering areas of high population density and low income.
Tiendas 3B has emerged as a key player in the hard discount sector, positioning itself as a competitor against consolidated chains such as Walmart's Bodega Aurrera Express and Chedraui's Supercito. With a business model focused on low prices, proximity and own brands, the chain led by Anthony Hatoum closed September 2024 with 2,634 units, surpassing the 151 branches of Supercito and the 1,386 of Mi Bodega Aurrera Express.
In the third quarter of the year, Tiendas 3B opened 131 new branches, reflecting an aggressive expansion strategy that seeks to consolidate its presence in Mexico. During a call with analysts, Hatoum highlighted that the Mexican market has the potential to sustain up to 20,000 units of this type of business. "It's natural to think that we'll focus on increasing the pace of store openings over time, but for now, we're very comfortable sticking to the guidelines," he said.
This geographic expansion, based on "organic and circular" growth, has allowed Tiendas 3B to gain a foothold in key regions such as Mexico City, the State of Mexico, Puebla, Veracruz, and Michoacán, covering areas of high population density and low income.
Proximity and low prices as a competitive advantage
The success of the chain lies in its value proposition: a restricted offer of approximately 700 essential products that include food, beverages and general merchandise. The combination of private labels with competitive prices allows the company to reduce operating costs and increase profitability.
"Proximity is one of the keys to its success. Consumers do not have to travel long distances to buy what they need, which was especially relevant during the confinement due to the pandemic," explains Ángel Méndez, business consultant and academic at the Banking and Commercial School (EBC).
Julián Fernández, CEO of Ferdez Business Consulting, highlights that this model responds to the needs of a specific niche. "There is a significant proportion of the population that depends on low prices and frequent purchases. Tiendas 3B occupies a space that the large chains do not always serve."
Between January and September 2024, Tiendas 3B reported sales of 41,092.4 million pesos, a growth of 29.4% compared to the previous year, and an EBITDA of 2,002.3 million pesos. These figures reflect the consolidation of its business model in a challenging economic environment.
Although Tiendas 3B has consolidated its position, its path is not without challenges. The hard discount market in Mexico is competitive, with players such as Mi Bodega Aurrera Express and Supercito trying to gain share in the segment. However, Hatoum is optimistic.
"The Mexican market is very competitive, but due to its territorial and market size, there is room for up to four players in the same business segment. This benefits the customer at the end of the day," he said in a previous interview with Expansión.
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