CORPORATE PROFILE

ABOUT CHEDRAUI

This material references Disclosures 102-1, 102-2, 102-3, 102-5, 102-6 and 102-16 of GRI 102: General Disclosures 2016

Grupo Comercial Chedraui, S.A.B. de C.V., mainly known as Chedraui, is a leading company in the Food Retail sector, in which it participates by means of its divisions in Mexico and the United States, in addition to owning a Real Estate division to operate shopping centers.

Grupo Comercial Chedraui, S.A.B. de C.V., was incorporated for an indefinite term in the city of Xalapa - Enriquez Veracruz on April 23rd, 1987, and its headquartered at Privada de Antonio Chedraui Caram #248, Colonia Encinal, 91180, Xalapa, Veracruz. Separately, the corporate offices are located at Av. Constituyentes #1150, Lomas Altas, Delegacion Miguel Hidalgo, 11950, Mexico City.

In its operations in Mexico, Chedraui’s geographical footprint extends throughout 25 states by means of four store formats, Tiendas Chedraui, Súper Chedraui, Súper Che and Supercito, while also having the "Selecto" concept, which offers premium products for customers with high purchasing power, thus catering different segments of the population through multiple formats ranging from hypermarkets to proximity stores.

In its operations in the U.S., Chedraui focuses on serving the needs of the Hispanic and Mexican American communities in the states of California, Nevada, Arizona, New Mexico and Texas through its El Super stores, and since 2018, as a result of the acquisition of Fiesta one of the leading niche food retail chains in this country, meets the needs of Latino consumers as well of those of different backgrounds, in the main cities of Texas.

Finally, the Real Estate division is responsible for the management of the Company's owned and leased properties and the gross leasable area, the planning of new stores as well as of the building and remodeling of stores in Mexico.

CHEDRAUI VALUES

We drive ourselves with a truthful and upright behavior whether inside or outside the Company’s facilities, in order to preserve the trust and credibility of customers, suppliers, shareholders and co-workers.

With loyalty and responsibility, we assume the Company’s mission of “provide our customers with outstanding value by offering the products they desire at the lowest possible price”.

We treat all our employees, clients and suppliers, with dignity and justice, avoiding taking advantage of our authority level.

All our actions are focused on working with effectiveness and efficiency to guarantee our permanence, by means of meeting the established objectives and making the most of the resources we have, without any waste.

HISTORY

STRATEGY – CHEDRAUI EXPERIENCE

This material references Disclosures 102-2, 102-4, 102-6 and 102-7 of GRI 102: General Disclosures 2016

In Chedraui, our strategy is based on 3 pillars that distinguish us from our competitors:

Lowest Price:

Guaranteed through the daily market check we conduct in the stores of our competitors, at both central and local levels, to adjust our prices and thus becoming the best option for our customers.

The best store by store Assortment:

Curated by customer and region in order to satisfy each consumer type and economies, where especially outstanding is that the offering of our biggest store formats is near to 74, 000 SKU’s (product codes).

Optimal Shopping Experience:

Supported with state-of-the-art facilities in terms of cleanliness, comfort, lighting, proper signage and parking space.

Retail in Mexico

Hypermarkets

Tiendas Chedraui:

Around 74,000 SKU’s

Located in cities of at least 100,000 inhabitants

Average sales floor of 6,635 sqm

Products: Edible and non-edible groceries, perishables, general merchandise, clothing and electronics

Súper Chedraui:

Around 32,000 SKU’s

Located in towns and cities of at least 25,000 inhabitants, as well as in a number of big cities as complementary offering

Average sales floor of 2,110 sqm

Products: Edible and non-edible groceries, perishables, general merchandise and electronics

Selecto:

Concept addressed to (and recognized by) the segment of the population with higher purchasing power, which, in addition to traditional products, offers organic, kosher, gourmet and in general, products of higher added value.

Present in both hypermarket formats

# of Tiendas Chedraui Selecto : 19

# of Súper Chedraui Selecto : 4

Proximity

Súper Che:

Around 13 thousand SKU’s

Operates in large cities

Average sales floor of 1,206 sqm

Products: Edible and non-edible groceries, perishables and general merchandise

Supercito:

Around 2 thousand SKU’s

Operates in areas with high population density within large cities

Average sales floor between 188 and 373 sqm

Products: Edible and non-edible groceries, perishables and general merchandise

Distribution Centers

Location and Main Features of the Distribution Centers


ZUMPANGO, STATE OF MEXICO
  • Extension: 59,100 sqm
  • Service capacity: 361 stores
  • Merchandise: Dry, refrigerated and frozen
  • In 2019 it handled 65.2 million boxes of dry merchandise, 5.8 million boxes of fruit and vegetables and 10.7 million boxes of perishables
  • Docks: 188
VILLAHERMOSA, TABASCO
  • Extension: 56,493 sqm
  • Service capacity: 125 stores
  • Merchandise: Dry, refrigerated and frozen
  • In 2019 it operated 35.6 million boxes of dry merchandise, 4.2 million boxes of fruit and vegetables and 5.7 million boxes of perishables
  • Docks: 182
MONTERREY, NUEVO LEON
  • Extension: 883 sqm
  • Service capacity: 18 stores
  • Merchandise: Dry and fruit and vegetables
  • In 2019 it handled 1.1 million boxes of dry merchandise and 1.2 million boxes of fruit and vegetables
  • Docks: 16
LA PAZ, BAJA CALIFORNIA SUR
  • Extension: 506 sqm
  • Service capacity: 18 stores
  • Merchandise: Dry and frozen
  • In 2019 in managed 852 thousand boxes of dry merchandise and 39 thousand boxes of perishables
  • Docks: 6
GUADALAJARA, JALISCO
  • Extension: 10,386 sqm
  • Service capacity: 38 stores
  • Merchandise: Dry, frozen and refrigerated
  • In 2019 it handled 8.3 million boxes of dry merchandise, 805 thousand boxes of fruit and vegetables and 893 thousand boxes of perishables
  • Docks: 30
CANCUN, QUINTANA ROO
  • Extension: 6,201 sqm
  • Service capacity: 37 stores
  • Merchandise: Dry
  • In 2019 it operated 6.2 million boxes of dry merchandise
  • Docks: 20
VERACRUZ, VERACRUZ
  • Extension: 11,087 sqm
  • Service capacity: 45 stores
  • Merchandise: Dry
  • In 2019 it operated 20.2 million boxes of dry merchandise
  • Docks: 54

Retail in the United States

EL Super

Offers high quality perishables and groceries (55% of which are supplied by the distribution center in Los Angeles, California distribution center)

Present in the states of California, Arizona, Nevada, New Mexico and Texas

Mainly serves customers with Mexican American and Latino heritages

Fiesta

Offers high-quality perishables and groceries, in addition to general merchandise and clothing in some of its stores

Present in the main cities of the state of Texas (Austin, Dallas and Houston)

Serves Latino and other ethnic backgrounds

Real Estate Division


Our Real Estate division operates and maintains shopping centers anchored by one of the Company stores, in addition to leasing commercial places to third-parties, complementing and adding value to the retail locations.

The segment’s three most important activities are:

GEOGRAPHICAL FOOTPRINT

This material references Disclosure 102-4 of GRI 102: General Disclosures 2016

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