FEMSA Rebrands 15 DK Stores to OXXO in Texas, Tests New Formats

FEMSA has rebranded 15 DK stores to OXXO in the Midland-Odessa metropolitan area of West Texas, as part of its expansion into the US convenience retail market.

The move was confirmed by José Antonio Fernández Carbajal, Chairman and CEO, FEMSA, during a recent earnings call. He stated that the company plans to convert nearly all of its DK locations—approximately 99%—while closing some and opening new units as part of its broader retail strategy.

“We are planning to open some stores even this year to test performance,” Fernández Carbajal said. “But again, it will be fewer than 10, and we will see how the momentum plays out.”

Customer response to the rebranding has been positive, with FEMSA reporting double-digit growth in both sales and foot traffic at the newly converted stores.

“We just rebranded another 14 and are seeing similar increases,” he added. “The boost in sales and traffic has been significant, even double digits from the first store. It may be a honeymoon phase and should stabilize over time.”

FEMSA is currently testing different store formats in the United States to refine OXXO’s value proposition. Some locations emphasize groceries, while others blend the convenience and “dollar store” models.

As part of its product strategy, the company has introduced its Andatti coffee brand to the US market and plans to pilot select outlets featuring Gorditas Doña Tota. FEMSA is also exploring a partnership with a pizza chain, though the name has not been disclosed.

“We are testing other options in hot food, but it is still early,” Fernández Carbajal said. “We would love to reach up to 10% of in-store sales from foodservice, but it is too early to say how that will play out. We need more time.”

Over the next two years, FEMSA aims to establish a “winning value proposition” that differentiates OXXO in the US market and attracts customers from larger regional players.

In addition to organic growth, FEMSA remains open to mergers and acquisitions, particularly in the US Southwest and Southeast, excluding California and Florida.

“We would explore M&A opportunities if they arise in regions where we believe we could be a major consolidator,” Fernández Carbajal said. “The key is to ensure we have the right value proposition.”