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At the end of 1991 there were 38 Almacenes Aurrera self-service department stores, selling general merchandise, clothing, and supermarket items. In 1990 Cifra's sales grew by 26 percent, and between 19 its stock shot up almost fivefold. Joint Venture and Subsequent Expansion: Early 1990s Its sales in 1989 were about $550 million, and its stock more than tripled in value during the year. It had grown in sales by 20 percent or more in every year of the decade.

By the end of 1989 Cifra was in its best financial shape ever. Located in the poorer neighborhoods of Mexico City, the Bodega Aurrera stores, for example, stocked all types of nonperishable goods to the ceiling and offered prices as low as half those of other retailers. He kept all existing stores open and retained the employees, although they were expected to work longer hours and those who left were not replaced.Ĭifra's emphasis on discounting helped sustain the company during these dark years. But Arango was confident enough of the future to buy back Jewel's share in the business (which he renamed Cifra in 1984) from its successor, American Stores Co., for about $53.4 million. Hard times came in 1982, when the peso collapsed because of huge foreign debt, touching off an inflationary crisis and a severe recession that lasted for years. Jewel's stake had dropped to 41.7 percent of the outstanding shares by 1980 and eventually would fall to 36.1 percent. became publicly owned in 1976, the year it opened its first hypermarket, and was so successful that by 1981 Jewel's Mexican operations accounted for nearly one-third of its income. In 1970 he opened the first of the firm's Bodega Aurrera discount warehouse stores and Suburbia department stores. While Manuel and Placido Arango took their part of the money and left the business to establish other enterprises, Jerónimo studied modern retailing at Jewel headquarters in Chicago.

of Chicago organized a joint venture with the Arango brothers to start new stores, and a year later Jewel acquired a 49 percent stake in the business for about US $20 million. The company's first Superama supermarket opened in 1960 and the first Vip restaurant opened in 1964. Nevertheless, Aurrera reportedly won sympathy by publicizing its competitors' tactics during its sponsorship of the popular television show, 'The 64,000 Peso Question.' By 1965 eight Aurrera stores were in existence, drawing $16 million in sales. Soon the brothers had to locate alternate sources of goods as far away as Guadalajara and Monterrey because the Arangos' suppliers were threatened with boycott by angry rivals. In fact, the store was selling household goods and clothing at 20 percent below manufacturers' list prices, while established retailers were marking them up by 40 to 45 percent. Like the Korvette store, Aurrera Bolívar immediately drew the public, and-also like Korvette's-it attracted the hostility of established retailers, who felt threatened by competition engendered by Aurrera Bolívar's low prices. Called Aurrera Bolívar, this discount store was opened in downtown Mexico City in 1958. Impressed by Korvette's success, he persuaded his father to lend him the equivalent in pesos of $240,000 so that he could organize a similar venture with his two brothers, Placido and Manuel. Korvette, then a pioneering Fifth Avenue discount department store. While in New York City he saw a crowd waiting patiently for the opportunity to enter E.J. The son of a Spanish immigrant to Mexico who prospered in the textile business, Arango spent his youth studying art and literature at several American universities and traveling in Spain, Mexico, and the United States. owns 60 percent of Wal-Mart de Mexico.Ĭifra, Wal-Mart de Mexico's predecessor, was founded in 1958 by Jerónimo Arango. Aside from the 34 Sam's Club stores and the 69 Bodega Aurrera stores, the company's business formats include: 27 Wal-Mart Supercenters, 38 Superama supermarkets, 51 Suburbia discount apparel stores, 38 medium-sized, general merchandise Aurrera stores, and 205 Vips restaurants. Combined, the two chains account for 49 percent of the $6.4 billion the company collected in sales in 1999. Wal-Mart de Mexico's two principal retail chains-in terms of their contribution to the company's annual sales totals&mdashe Sam's Club stores and Bodega Aurrera stores, both of which operate as warehouse-style concepts. de C.V., is the largest retailer in Mexico, operating 460 units under a number of different banners.