Since our incursion to the U.S. market in 2001, Famsa USA has targeted the Hispanic population; replicating the principles of flexible financing and personalized service offered by Famsa Mexico.

Our stores are located in the 5 states that concentrate approximately 60% of the Hispanic population. In addition, the Famsa brand name is widely known within this segment owing not only to the advertising campaigns we carry out in the United States, but also to the recognition achieved in the course of more than 38 years serving the population in Mexico.

We also offer differentiated services such as Famsato-Famsa, whereby our Hispanic clients can purchase merchandise in Famsa USA stores and have it delivered to family members through Famsa Mexico, making the most of our infrastructure on both sides of the border.

The access to a highly attractive market outside of Mexico that Famsa USA provides, is a crucial element of Grupo Famsa’s complementary business portfolio. As of year-end 2008, sales outside of Mexico accounted for 24.3% of the company’s total revenues.

Moreover, the diversification fostered within Famsa USA’s operations reinforce our successful business model fundamentals. We have balanced our exposure to particular economic conditions in different geographical regions and to the sensitivity of some product categories.

Taking into account the fact that economic conditions differ significantly across states, we have established a presence in California, Texas, and more recently Illinois, allowing us to offset the shifting of economic cycles. In Texas, for example, we experienced fast growth during 2008, while California was more affected by adverse market conditions. Such coverage diversification has resulted in a more stable income line.

Hispanics make up the largest and fastest-growing minority in the United States. Besides, their purchasing power is approximately twice that of the average Mexican consumer.

The enormous potential of our niche has underpinned the solid track-record of sales and coverage growth accomplished by Famsa USA. Today, we are one of the top 100 US retailers in sales of each of our three main product categories (Furniture, Electronics and Appliances).

This year we ventured into the Río Grande Valley market in Texas, effectively integrating the 8 Edelstein’s Better Furniture stores. Additionally, we made a successful incursion into Chicago by installing our own logistical and commercial infrastructure in the Midwest.