Finding the exclusive franchise partner for a European retailer in Mexico

HEMA is a Dutch variety store-chain which began operations as a variety store in Amsterdam in 1926. The chain is characterized by relatively low pricing of generic housewares, which are mostly made by and for the chain itself, often with an original design. The brand, which currently has more than 775 stores in twelve countries, with 19,000 employees serving over six million visitors every week was looking for an exclusive franchise partner in Mexico as a first step of its Latin American expansion.

The Challenge

Our outreach generated a lot of interest of many retail operating groups in the country, so making a final partner selection presented a situation in which good candidates were ruled out. A couple of Asian based competitors had already started developing their networks in the market.

Our involvement

Our role was to reach out to all major operating groups in the country, select the best qualified prospects and help the client to narrow down the selection to a final trio of candidates. Our first outreach generated more than twenty qualified candidates. We helped the client understanding the competitive and retail landscapes in Mexico.

Results

With our help, the client was able to select a very experienced and well-capitalized franchise partner with the commitment to open +100 stores and to develop other channels such as e-commerce.