At Supercenter our efforts are centered on having the best and most complete assortment in the majority of our categories, thereby driving our value proposition in Perishables, General Merchandise, and Our Brands.

This year we increased the coverage we have for the home delivery of grocery products throughout Mexico, doubling the number of deliveries made. Our portal -walmart.com.mx- underwent changes that make it easier for our customers to access Grocery and General Merchandise products. Our in-store eCommerce kiosks have also evolved, with modules now found on the sales floor so as to better serve our customers and make them more comfortable to use. Moreover, we have begun offering free wireless internet service in some stores as a supplementary way of providing the opportunity to explore additional buying options within our internet portal. Signage in our stores has been adjusted to better communicate our extended online catalog, giving our customers the choice of using the channel of their preference for their shopping needs.

Superama now has a reinforced offering for Perishables. An example of this is the Experts in Fresh program, through which we provide training for our associates so they can be even more informed regarding this division and provide better service to our customers. We launched two new campaigns, Grill Masters and NFL, focused on relevant shopping occasions. The results have been quite favorable. We have underscored our commitment to customer service with our field associates through the Clean, Fast, Friendly and Safe campaign, whose goal is to enhance the shopping experience. Betting on our online offerings, we have focused on renewing our mobile app, making it more dynamic and user-friendly. In parallel, we initiated our Click & Pick service. With this, our customers can buy their products through different digital channels, with the option of picking up their orders directly at the store.

This year Sam’s Club celebrated its XXV anniversary. We continue to offer greater differentiation in all the divisions of the business, with greater emphasis placed on Perishables. We work hand-in-hand with our strategic partners to have new items, packaging fit for a membership warehouse club, imported products, quality brands, and exclusive items, all with the purpose of adding value to each membership. This past year was the beginning of our item segmentation and regionalization strategy, which focuses on providing the best variety according to the income level and geographic location of our members.

Similar to that implemented in Supercenter, this year we began offering wireless internet in some clubs so our members can consult the extended product catalog offered online at sams.com.mx. Having achieved the highest growth rate of the last five years regarding our customer base is a reflection of all these efforts, driven by the highest membership renewal rate ever.

True to our value proposition for Bodega Aurrera, we strengthened our price programs: Morralla, Anniversary, and Bodega Prices. We have also worked on initiatives to improve our offering of Perishables, together with raising operation standards in our stores through our Centers of Excellence program. On the other hand, we relaunched our communication strategy and our iconic figure of Mamá Lucha through a digital platform in social media, focused on increasing the interaction of the brand with our customers.

Our formats in Central America posted solid performance, translating into increased sales and greater market share in all divisions throughout the region. We conduct on-going monitoring of our key divisions so as to continue offering the best prices and assortment. The Global Promo program was launched in 2016, thus allowing us to sell products from different categories combined with lower prices, which in turn generated a favorable response from our customers, especially regarding our supermarket formats. We also improved the product catalog in our discount stores, resulting in a more competitive value offering and increased traffic from the target demographic segment.