Chedraui's stock price declined by 27% as tighter immigration controls in the United States led to lower revenues across its approximately 400 U.S. locations. The company runs nearly 400 stores in the U.S. and about 700 stores in Mexico. Total U.S. sales for the quarter dropped 2.6%.
The Mexican stock market's main index has risen approximately 4% so far this year.
Chedraui's U.S. stores cater primarily to the Hispanic community. Immigration raids have made customers change their habits. Actinver analyst Antonio Hernández said, "The Latino consumer doesn't want to be around as much as before" amid the immigration raids.
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The company's CEO, José Antonio Chedraui Eguía, said in an April earnings call that U.S. sales "continue to be impacted by stricter immigration enforcement." The CEO also stated that he anticipates improvements in operations and profitability through cost controls and other initiatives.
According to analyst Ariel Méndez Velázquez of Banco Ve Por Mas, the U.S. revenue segment "has been heavily impacted by US immigration policies affecting consumption within the Hispanic community - Chedraui's primary market niche in the region, particularly in California and Texas."
Higher gas prices in the U.S. are also squeezing budgets, according to Méndez. In Mexico, the company faces a challenging tourism environment that has brought fewer visitors to the southern part of the country, where many of its 700 stores are concentrated.
"Macro factors play and will continue to play a significant role, largely due to that geographic concentration in Mexico and the United States," said Actinver's Hernández.
The grocer's vulnerability stems from its customer base: in the U.S., nearly all its stores serve Hispanic shoppers, many of whom are immigrants or mixed-status families. When immigration enforcement intensifies, these customers reduce their public activities, including shopping, for fear of detention or deportation. This behavioral shift directly impacts Chedraui's foot traffic and sales, as seen in the recent quarter.
Its U.S. locations, primarily in California and Texas, serve a predominantly Hispanic customer base, while its Mexican stores are clustered in tourist-heavy southern regions. This dual exposure makes the chain especially sensitive to shifts in immigration enforcement, cross-border consumer behavior, and tourism flows. The recent sales decline illustrates how quickly government policy changes can alter shopping patterns, particularly among communities that feel vulnerable to raids and enforcement actions.
Chedraui's heavy reliance on Hispanic consumers in both the U.S. and Mexico makes it particularly vulnerable to shifts in immigration policy and cross-border economic conditions. With roughly 1,100 total stores, the chain is one of the largest grocers serving the Latino community, and any disruption to this customer base has outsized effects on its revenue.
The company plans to announce its second-quarter financial results after the market closes on July 22. Chedraui says it will focus on improving operations and profitability by controlling expenses.
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