Dive Brief:
- Latin American c-store giant Oxxo has rebranded 50 former Delek convenience stores in Texas to its own banner in the year since its parent company, Fomento Económico Mexicano S.A.B. de C.V., acquired Delek’s c-store arm, according to a Thursday announcement.
- Oxxo shared earlier this year that it was rebranding stores in Midland, Odessa and Lubbock, Texas, and it’s now making its way towards El Paso, the company said.
- Once it rebrands all 249 Delek c-stores, Oxxo will be one of the largest regional chains in the Southwest and a major competitive threat in Texas.
Dive Insight:
FEMSA began rebranding Delek’s former c-stores to the Oxxo banner in February. By the end of April, the retailer had converted 15 locations and hinted during its earnings call that month that it would ramp up the rebrands due to high sales and traffic at these locations.
The company hit 40 rebrands by the end of July. Around that time, leadership said that new stores were incorporating “several hundred” new items, including selections from Oxxo’s proprietary Andatti coffee program.
Now with 50 rebrands across West Texas under its belt, FEMSA is shifting its attention to El Paso, where it has 77 locations, or about a third of its U.S. c-store network, according to the announcement. The retailer expects to convert seven locations there by the end of 2025 and 35 more in 2026 before completing the rest of the stores in that city in 2027.
“Looking ahead to 2026, OXXO will continue to strengthen its presence in the regions where it already operates, adapting its model to local preferences and consolidating stores that deliver practicality, accessibility, and a genuine commitment to the community,” the company said in its announcement.
Besides its Andatti coffee program, rebranded stores will also feature a “diverse prepared food offering,” with QSRs like Subway, Sbarro and Chester’s Chicken, according to the announcement.
