BY FORMAT

We are a Company very well positioned to serve customers from various segments, with different shopping habits and preferences, thanks to our solid and extensive portfolio of business formats. Our focus this year consisted of strengthening the value proposition of each one of our formats, witnessed in the results obtained in our Self-service formats as well as in our warehouse membership clubs. Now, through an ever growing Multichannel platform, we have been able to provide our customers an increasingly better shopping experience.

Bodega Aurrera adopted the strategy of strengthening its ties with the customers, meeting all expectations, and building medium and long term objectives so as to continue being a convenient destination for their purchases. We provided them with a variety of products known for their quality and price, thus translating into greater savings for their wallets. As a result of aggressive pricing campaigns such as Loose Change, Bodega Price, and Anniversary, we were able to gain mind share with our customers as the most economical option for them, and our Private Label products have also generated additional loyalty among all of our Bodega customers.

Our Supercenter units always strive to have a comprehensive, differentiated, and innovative assortment at the best price. We kept building our value proposition throughout the year based on those attributes; additionally, this was the business format with the highest same-store sales growth, supported by solid performance across all divisions. We continue consolidating our Tuesday Freshness Program, extending the variety and price of Produce items offered. Early in the year, we launched a new price campaign -Climbing Downward Instead- meant to make the uphill struggle after the holidays easier by offering very attractive prices; the Renew Your Technology event was designed to help our customers face the switch from analog to digital TV by offering a broad range of products at affordable prices. We continued building our Multichannel platform supported by walmart.com.mx service kiosks in each of our stores, in case our customers need to make a purchase on our eCommerce sites while they are visiting a brick-and-mortar store.

This year Superama celebrated its 50th anniversary of being a well-rooted supermarket tradition in Mexico. As part of the anniversary celebration and to reiterate our commitment to our customers, we launched a new campaign -Pampering You Even More- as a continuation of the successful program launched in 2014, Being Your Store. Both campaigns are centered around enhancing the shopping experience, highlighting key attributes like quality and freshness, differentiated experience, competitive prices, product variety, and our home delivery service. In addition, we have reinforced our strategic pillars by further driving our Superama guarantees and, for the first time, conducting a campaign focused on our associates: Strive to Provide the Best Service.

At Sam’s Club, 2015 was a year of recovery after a 2014 full of major challenges, thanks to different successful campaigns from the previous year, which were replicated this year. We extended the Centers of Excellence, a new concept operated with the highest of standards in all areas of our clubs, and in keeping with the shopping needs of our members, who look for differentiated products, good service, and wholesale prices in exchange for purchasing a membership card. In addition to a change in design, we invested in execution, differentiated products, better lighting and cleanliness throughout the clubs, all with the goal of becoming the best warehouse membership club in Mexico. By April 2015, all our clubs adopted this concept. As a result of consistently working to enhance our value proposition, we posted the highest growth in member base and in membership renewal rates in the last five years.

Our operations in Suburbia continue focusing on providing the best prices, assortment, quality, and service for our customers, supported by several initiatives throughout the year that enabled us to meet their shopping needs. Programs such as Sales Floor Ambassador and Fitting Room Ambassador helped to improve the shopping experience. From the moment our customers enter our stores, an Ambassador gives them brief but helpful information on the promotions of the day and assists them in finding the products they prefer. We also created simpler and more direct communication campaigns, establishing a better connection with our customers. Special screens were set up in a group of stores; with them, we convey fashion information on our primary brands and promotions. This way we help our customers keep up with the latest products found in our stores. It is worth mentioning that the sales performance for Suburbia during El Buen Fin surpassed average industry figures for the period.

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