The Mexican company Coppel is leveraging online sales by installing kiosks in stores so that customers can browse and purchase from their digital catalog. Despite needing to overcome its reputation as a 'lender of last resort' to fully capitalize on the growing purchasing power of the middle class in Mexico, Coppel is implementing smart strategies, according to Dave Marcotte, senior vice president of global retail at Kantar Consulting.
"They have done everything right," noted Marcotte. Grupo Coppel plans to invest 14.2 billion pesos in 2025, allocating more than 60 percent of this amount to finance 100 new stores this year and the renovation of another 66 stores. Agustín Coppel Luken, president and CEO, emphasized that consumer purchasing preferences vary between countries, and in this regard, the company is directing its efforts towards low-income shoppers.
Although in-person shopping remains predominant in Mexico, platforms like Mercado Libre and Amazon have brought retail into the digital age, forcing chains like Coppel to adapt. E-commerce is the fastest-growing segment of the business, and part of the planned investment for 2025 will focus on expanding distribution centers and additional facilities.
Coppel's strength is partly attributed to its internal bank, similar to its rival Grupo Elektra and high-end department stores. With nearly 1,900 stores in over 600 cities and towns, the family business has significantly expanded since its beginnings as a gift shop in Mazatlán. The company has also evolved technologically, focusing on the development of BanCoppel and improving its application for customers.
"Coppel, founded in 1939, evolved by diversifying into products such as bicycles, furniture, and electronics," said Agustín Coppel Luken. The company seeks to capitalize on the advantage of its physical stores and its application within a technological ecosystem, leveraging customer flow and credit history of its buyers to continue expanding in the competitive Mexican retail market.
