Supermercados Gigante

Supermercados Gigante was a large Mexican supermarket chain operated by Grupo Gigante. Its stores served consumers across Mexico and also extended into the United States, particularly in communities with substantial working-class Mexican-American populations. The business competed in a crowded North American and Mexican grocery market that included Soriana, Comercial Mexicana, Chedraui, Wal-Mart, H-E-B, Falabella, Cencosud and D&S. The chain operated conventional supermarket and larger hypermarket formats. Its retail proposition centered on everyday grocery shopping and general household purchases, placing it in direct competition with national Mexican chains and international mass merchants. The competitive environment was sufficiently price-focused that Wal-Mart promotional receipts were reportedly displayed around some Gigante stores to claim that comparable items could be purchased more cheaply at Wal-Mart, illustrating the intensity of rivalry among Mexican retailers. Gigante experienced store closures in Mexico in February 2006, including locations in Torreón, Monterrey, Matamoros, San Luis Potosí and Puebla. The closures preceded a broader change in ownership and operating strategy. On December 6, 2007, Organización Soriana acquired Supermercados Gigante in a transaction reported at US$1.35 billion. The deal covered the Mexican supermarket and hypermarket operations and included seven stores in the United States, although the U.S. locations were subsequently handled separately. Following the acquisition, the Mexican stores were to be converted to Soriana formats, bringing the Gigante supermarket banner to an end. The seven U.S. stores were acquired by Bodega Latina Corporation, the U.S. subsidiary of Grupo Comercial Chedraui, and were converted to the El Super banner. Bodega Latina later changed its name to Chedraui USA in 2022. The retail chain was distinct from the wider Grupo Gigante business after the transaction. Grupo Gigante continued operating other businesses, including Toks restaurants and Mexican operations associated with RadioShack and Office Depot. Supermercados Gigante also had a presence in popular culture, appearing in the film Ahí Viene Verónica and in miscellaneous TV Azteca programming. The supermarket brand is now defunct, with its former stores absorbed into successor retail banners.

Supermercados Gigante developed as the supermarket and hypermarket retail arm of Grupo Gigante, a Mexican business group that also operated Toks restaurants and Mexican retail operations associated with RadioShack and Office Depot. The chain became a significant participant in Mexico's organized grocery sector and expanded beyond Mexico into the United States. Its American locations were concentrated in predominantly working-class Mexican-American communities, giving the brand a cross-border customer base. The chain's principal business was mass-market food and general merchandise retailing. It competed with Mexican chains such as Soriana, Comercial Mexicana and Chedraui, as well as international and regional operators including Wal-Mart, H-E-B, Falabella, Cencosud and D&S. Price competition was a visible part of the market. Reports associated with the chain describe Wal-Mart receipts being displayed in Gigante stores to promote claims that selected products were cheaper at Gigante, reflecting the efforts of major retailers to win customers through comparative pricing. By 2006, the business was undergoing rationalization. On February 28 of that year, it closed selected stores in several Mexican cities: Torreón, Monterrey, Matamoros, San Luis Potosí and Puebla. The closures included seven Monterrey locations and smaller numbers in the other named cities. The reductions were followed by a major ownership transition. On December 6, 2007, Organización Soriana acquired Supermercados Gigante for a reported US$1.35 billion. The transaction covered the Mexican supermarket and hypermarket formats and included seven U.S. stores. Soriana intended to convert the Mexican locations to its own store formats, ending the operation of the Gigante supermarket banner in Mexico. The U.S. stores were handled through a separate transaction: Bodega Latina Corporation, Grupo Comercial Chedraui's U.S. subsidiary, acquired them and converted them to the El Super banner. Bodega Latina was renamed Chedraui USA in 2022. The sale did not dissolve Grupo Gigante. The parent company remained a separate business group with activities including Toks restaurants and Mexican RadioShack and Office Depot operations. Supermercados Gigante therefore represents a divested and discontinued retail banner rather than the entire Grupo Gigante enterprise. The brand also appeared in Mexican popular culture, including the film Ahí Viene Verónica and miscellaneous TV Azteca programs. After the 2007 transaction and the conversion of its stores, Supermercados Gigante ceased operating as an independent supermarket brand.

• 2022

  Bodega Latina renamed Chedraui USA

  [1]Supermercados Giganteen.wikipedia.org

  The former corporate owner of the converted U.S. stores changed its name from Bodega Latina to Chedraui USA.

• 2007

  Acquisition by Organización Soriana

  [1]Supermercados Giganteen.wikipedia.org

  Organización Soriana acquired the Mexican supermarket and hypermarket business in a transaction reported at US$1.35 billion.

• 2007

  U.S. stores transferred to Bodega Latina

  [1]Supermercados Giganteen.wikipedia.org

  The chain's seven U.S. stores were acquired by Bodega Latina Corporation and converted to the El Super banner.

• 2006

  Selected Mexican store closures

  [1]Supermercados Giganteen.wikipedia.org

  The chain closed stores in Torreón, Monterrey, Matamoros, San Luis Potosí and Puebla, including seven locations in Monterrey.

A mass-market supermarket and hypermarket chain competing on everyday grocery and household value in Mexico and selected Mexican-American communities in the United States.

• Supermarket retail

  Supermercados Gigante supermarkets

  The chain's standard supermarket stores supplied everyday groceries, fresh food, household products and other frequently purchased consumer goods. They targeted mass-market shoppers in Mexico and, through the U.S. operation, Mexican-American communities. The format was later discontinued and Mexican locations were converted to Soriana stores.

• Hypermarket retail

  Gigante hypermarkets

  Gigante also operated larger hypermarket locations combining grocery shopping with general merchandise. These stores formed part of the business acquired by Organización Soriana in 2007 and were intended to adopt Soriana formats after the transaction.

• 2007

  Sale of the supermarket business to Organización SorianaM&A

  Background

  Grupo Gigante sold Supermercados Gigante after a period that included selected Mexican store closures and continued competition from major Mexican and international grocery operators.

  Action taken

  Organización Soriana acquired the Mexican supermarket and hypermarket operations, while Bodega Latina Corporation separately acquired the seven U.S. stores.

  Aftermath

  The Mexican stores were converted to Soriana formats, and the U.S. stores were converted to El Super. Grupo Gigante continued independently with other businesses, including Toks and Mexican RadioShack and Office Depot operations.

  Reported acquisition value. US$1.35 billion (December 6, 2007)

  Source

1. 1Supermercados Giganteen.wikipedia.org