Deborah Fowler of Texas Tech University, Frances Ortiz Schultschik of the San Antonio Convention and Visitors Bureau, Greg Souquette of H-E-B Grocery Co., Ted Omohundro of Prime Retail and Michael Niemira of the International Council of Shopping Centers sat on a panel to discuss trends in cross-border retailing.
They agreed that Mexico’s retail industry is undergoing a major transformation. The number of high-end stores in large Mexican cities is growing, giving their U.S. counterparts more competition. U.S. retailers still have the edge because they carry a greater variety of items, have the latest styles and often sell at significantly lower prices. These advantages may erode as Mexico’s retail industry evolves.
To remain competitive with Mexican stores and other U.S. markets, panelists agreed, border cities and retailers seeking cross-border shoppers must focus on customer service. San Antonio and Houston are among the many U.S. cities with tourism bureaus or chambers of commerce that offer travel packages from Mexico that include airfare, hotel, shopping trips, and such extras as tourist activities and health care. Such package deals, combined with personal customer service, will be a necessary component of marketing to the Mexican shopper in the future.
Crossing borders usually involves inconveniences, but shoppers make the trip when retailers in another country offer better prices, selection or service. For the U.S.–Mexico border region, these differences have led to billions of dollars in business. As the gaps between the two economies shrink—and, in particular, as retailing in Mexico becomes more sophisticated—the character of cross-border shopping may change, presenting challenges to businesses on both sides.
