COMPANY PROFILE -Organización Soriana
Business Sector :Retail Stores
Operating Geography :Mexico, North America
About Organización Soriana :
Organización Soriana is a well-known retailer with more than 824 shops in Mexico. The corporate headquarters of the Mexican grocery and department store are located in Torreón, Coahuila de Zaragoza. Francisco and Armando Martin Borque, two Mexican businessmen and brothers, launched Soriana in 1968. The Company focuses on creating and running a network of grocery, discount, and supermarket outlets. Among other products, it sells food, clothing, accessories for cars, sporting goods, hardware, garden equipment, toys, personal care items, and electronics. Soriana Hiper and Mega hypermarkets, Soriana Super and Comercial Mexicana supermarkets, Soriana Express and Super City grocery stores, Soriana Mercado and Bodega discount supermarkets, as well as City Club membership clubs, are just a few of the various brand names under which it operates its stores. Additionally, it provides delivery and online buying services via the Soriana e-commerce platform. With the inauguration of Soriana Híper and City Club in 2022, Organización Soriana added 800 more stores across Mexico.
The USP of Organización Soriana is that it is the top business in the commercial sector of Mexico, with a logistics network made up of 14 Distribution Centers strategically positioned in 8 states. The Vision statement of the company reads, “Serving an increasing number of communities as a leader, by offering the best shopping experience for the customer and the best place to work for our collaborators, derived from constant innovation”.
Organización Soriana Revenue :
Pesos 155.247 billion - FY ending 31st Dec 2021 (y-o-y growth -1.14%)
Pesos 157.053 billion - FY ending 31st Dec 2020
Competitive Analysis of Organización Soriana
The SWOT analysis for Organizacion Soriana is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Strong presence across 32 states of Mexico with 798 stores.
2. Second largest supermarket in Mexico in terms of revenue
3. Operates across various business segments like hypermarkets, supermarkets, city club, e-commerce and others.
4. Caters to an active customer base of 10 million.
| 1. Store closures have affected sales of company.
2. Slow and low growth in revenue and profits.
|
Opportunities | Threats |
1. Expand financial services operation to capture the low-level banking penetration market of Mexico.
2. Drive growth through omni-channel strategy.
3. Optimize the existing stores as part of the growth strategy.
4. Improve logistics to optimize operations.
| 1. Shortage of truck drivers in Mexico can affect logistics.
2. Disruptions in supply chain can affect operations.
3. Rise in covid-19 cases can affect sales. |
Organización Soriana SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed SWOT Analysis of Organización Soriana
Strength
This section is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Expand financial services operation to capture the low-level banking penetration market of Mexico: Falabella is the financial services brand of Organizacion Soriana. This organization has ample experience in the Latin American market and a portfolio of more than 6 million active cards, has completed its fifth year of operation in the country. The credit card business of Falabella-Soriana has reached more than 340 thousand customer accounts at year closing and present in 155 customer service modules in 13 states of the country. Mexico has a low level of banking penetration in Mexico and this provides an important opportunity for growth in the financial market. Many parts of Mexico are cut off from the financial services offered by banks. More than half of the population of Mexico do not have bank accounts. The government of Mexico is planning to boost the banks of Mexico and build banks across all the states. This will provide growth opportunities for the financial services wing of Soriana.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Organizacion Soriana is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Ukraine- Russia war has disrupted the global supply chain. | 1. Financial inclusion has been a long-standing problem for Mexico.
2. Inflation has reached a two decade high in Mexico.
|
Social | Technological |
1. Covid-19 has brought changes to the consumer buying behaviour in Mexico.
2. Personalised shopping experience has become important in online shopping for customers.
| 1. Digital transformation is gaining pace in the retail industry of Mexico.
2. Retail automation has become important for operating leaner organizations.
|
Legal | Environmental |
1. An investigation has been initiated into retail e-commerce market by Federal Economic Competition Commission.
2. Use of single-use plastic bags in Mexico has been banned.
| 1. The demand for sustainable products has increased in Mexico consumer market due to environmental consciousness. |
Organización Soriana SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of Organización Soriana
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
1. Covid-19 has brought changes to the consumer buying behavior in Mexico: Like in other markets around the world, the global pandemic has altered consumer behaviour in Mexico. Restrictions put in place throughout 2021 and 2022 encouraged consumers to use digital channels while highlighting the significance of grocery retail as a major source of essential food, drinks, and supplies for personal and home care for households across the nation. Since the coronavirus variants have prevented a complete return to previous shopping habits, Mexican grocery retailers have been forced to develop robust e-commerce capabilities and solutions. More than $20 billion in gross merchandise value was estimated for modern trade, which includes hypermarkets, supermarkets, and convenience stores, with an increasing portion going to online sales. Pure-play digital grocery companies have risen to compete, and existing players are stepping up their efforts to become true omnichannel players. Organizacion Soriana has implemented strategy for omnichannel expansion of its business. This strategy is focused to drive growth in the e-commerce segment. Over 1.5% of the company’s business comes from digital platforms and the company is looking to grow this.
The remaining section under "Social" is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Brands :
- Soriana Hiper
- Soriana Super
- City Club
- Flabella
- Sodimac Home center
Organización Soriana SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of Organización Soriana:
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Organización Soriana Porter's Five Forces Analysis |
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Organización Soriana VRIO Analysis |
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Organización Soriana Value Chain Analysis |
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Organización Soriana Covid-19 Impact Analysis |
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Organización Soriana BCG Analysis |
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Organización Soriana Segmentation, Targeting and Positioning (STP) Analysis |
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Organización Soriana Ansoff Matrix Analysis |
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References used in Organización Soriana SWOT & PESTLE Analysis Report
1. Annual Report - https://www.organizacionsoriana.com/pdf/Infome%20Anual/2021/Soriana_IA_2021-ingles%20low.pdf
2. Store closures affect sales in Soriana, fall 1.3% in the second quarter - https://www.bullfrag.com/store-closures-affect-sales-in-soriana-fall-1-3-in-the-second-quarter/
3. Supply chain implications of the Russia-Ukraine conflict - https://www2.deloitte.com/us/en/insights/focus/supply-chain/supply-chain-war-russia-ukraine.html
4. For access to our content, please go to https://www.euromoney.com/reprints - https://www.euromoney.com/article/b1klktqwt9s9fy/financial-inclusion-mexico-plans-a-bank-building-spree
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Organización Soriana SWOT and PESTLE analysis has been conducted by Sushil Kumar Panda and reviewed by senior analysts from Barakaat Consulting.
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