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The Transformation of Mexican Retailing with NAFTA

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  • Manuel Chavez

Abstract

With the signing of the North American Free Trade Agreement, NAFTA, in 1994, the opening up of Mexican commercial sectors was completed. Thereafter, the growth of multinational supermarket chains accelerated and Mexican food distributors and retailers were forced into redefinition and regrouping, not only at company level but also at the regional–location level. The central and northern regions are witnessing increased efforts on the part of supermarket chains to capture local market segments, a process which imposes new demands on producers, wholesalers, and consumers. This article addresses the strategies of competition and collaboration of Mexican and US supermarket chains in the new regional context, and highlights the lack of Mexican public policy to help domestic retailers to compete effectively.

Suggested Citation

  • Manuel Chavez, 2002. "The Transformation of Mexican Retailing with NAFTA," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 503-513, September.
    • Handle: RePEc:bla:devpol:v:20:y:2002:i:4:p:503-513
    DOI: 10.1111/1467-7679.00186
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    Cited by:

    1. Javorcik, Beata S. & Li, Yue, 2013. "Do the biggest aisles serve a brighter future? Global retail chains and their implications for Romania," Journal of International Economics, Elsevier, vol. 90(2), pages 348-363.
    2. Beata Javorcik & Wolfgang Keller & James Tybout, 2008. "Openness and Industrial Response in a Wal‐Mart World: A Case Study of Mexican Soaps, Detergents and Surfactant Producers," The World Economy, Wiley Blackwell, vol. 31(12), pages 1558-1580, December.
    3. Iacovone, Leonardo & Javorcik, Beata & Keller, Wolfgang & Tybout, James, 2015. "Supplier responses to Walmart's invasion in Mexico," Journal of International Economics, Elsevier, vol. 95(1), pages 1-15.
    4. Sexton, Richard J. & Sheldon, Ian M. & McCorriston, Steve & Wang, Humei, 2004. "Analyzing Vertical Market Structure And Its Implications For Trade Liberalization," 2004 Annual meeting, August 1-4, Denver, CO 20060, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jonathan Matusitz & Elizabeth Minei, 2011. "Cultural Adaptation of an MNC in Mexico: A Success Story," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 418-429, December.
    6. Roe, Terry L. & Shane, Mathew & Somwaru, Agapi, 2005. "The Rapid Expansion of the Modern Retail Food Marketing in Emerging Market Economies: Implications to Foreign Trade and Structural Change in Agriculture," 2005 Annual meeting, July 24-27, Providence, RI 19112, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Sandrey, Ron & Matlanyane, Adelaide & Maleleka, David, 2006. "Trade Liberalisation: What exactly does it mean for Lesotho?," Conference papers 331462, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Kaditi, Eleni A., 2011. "Market Dynamics in Supply Chains: The Impact of Globalisation and Consolidation on Food Companies' Mark-Ups," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114452, European Association of Agricultural Economists.
    9. repec:lic:licosd:27311 is not listed on IDEAS
    10. Eleni A Kaditi, 2011. "Market Dynamics in Supply Chains: The Impact of Globalisation and Consolidation on Food Companie's Mark-ups," Working Papers id:4430, eSocialSciences.

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