Costco Pauses Oaxaca Expansion, Eyes Growth โคin Northern Mexicoโ and Yucatรกn Peninsula
Costco wholesale has shelved plans for a new store in Oaxaca, Mexico, citing ongoing disruptions from teacher protests, while concurrently exploring expansion opportunitiesโ in northernโค Mexico and the Yucatรกn Peninsula. the decision reflects a strategic balancing act for the retailโ giant as it navigates โขregional challenges and seeks to capitalize on growth potential within the country.
The company had initially considered Oaxaca as a potential location, but Costco’sโค Senior โขVice President and Generalโฃ Manager of Costco Wholesale Mexico,โค Ricardo Talayero, explained the decisionโค to postpone was due โขto the frequent roadblocks and demonstrations organized by local teachers’ unions. “In โOaxaca it is very challenging because I am a foreign company and if you see when theโฃ teachers demonstrate, and everyone talks about it, then I saidโ ‘not for the moment,'” Talayero โคstated.
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 โactively analyzing the feasibility โof opening locations in the northern regions of the country and the Yucatรกn Peninsula, signaling a focus on areas โwith more stable operating environments and promising market demand.This expansion aims toโ serve โa growing customer base and strengthen Costco’s presence in key Mexican markets.