Costco Pauses Oaxaca Expansion, Eyes Growth in Northern Mexico and Yucatán Peninsula
Costco wholesale has shelved plans for a new store in Oaxaca, Mexico, citing ongoing disruptions from teacher protests, while concurrently exploring expansion opportunities in northern Mexico and the Yucatán Peninsula. the decision reflects a strategic balancing act for the retail giant as it navigates regional challenges and seeks to capitalize on growth potential within the country.
The company had initially considered Oaxaca as a potential location, but Costco’s Senior Vice President and General Manager of Costco Wholesale Mexico, Ricardo Talayero, explained the decision to postpone was due to the frequent roadblocks and demonstrations organized by local teachers’ unions. “In Oaxaca it is very challenging because I am a foreign company and if you see when the teachers demonstrate, and everyone talks about it, then I said ‘not for the moment,'” Talayero stated.
Despite abandoning the Oaxaca project, Costco remains committed to expansion within Mexico. Current plans include new branches in Mexico city, Durango, and Tampico. The company is also actively analyzing the feasibility of opening locations in the northern regions of the country and the Yucatán Peninsula, signaling a focus on areas with more stable operating environments and promising market demand.This expansion aims to serve a growing customer base and strengthen Costco’s presence in key Mexican markets.