- A joint venture has stemmed from the partnership between the companies FEMSA and Raízen, both having a 50% stake, valued at R$ 1.1 billion.
- One of the proposed strategies will be to expand the stores of the Shell Select network, which increased its revenue by 12% last year, after investing close to BRL 50 million.
- In Brazil, Shell owns around 6.5 thousand gas stations.
FEMSA, a Mexican company that manages the operations of the popular convenience store Oxxo in Mexico and other countries in Latin America, such as Chile, Colombia, and Peru, will bring its operations also to Brazil, through a joint venture with Raízen.
The goal of Raízen, the distributor of fuels in Brazil under the Shell brand, and FEMSA is to open more stores with the Select brand in gas stations across the country, in addition to “opening convenience stores with the brand Oxxo outside gas stations,” as explained by the Vice President of Raízen, Leonardo Pontes, during the announcement of the partnership, according to the report of Gazeta do Povo.
The strategy will stimulate competition in other retailers in the country, such as Pão de Açúcar and Carrefour, since Pontes believes that there is a great potential in developing the convenience store market in Brazil during the next five to ten years. “This is a market that contributes 20 thousand units in the entire country. We want to take a bite out of that market,” explained the VP of the company.