Jason Hall

They know themselves, they know their customers.

And here's the big thing, they also have really, really favorable long-term tailwinds.

Emily, what do you say we head down to Mexico for some holiday grocery shopping at BBB Foods?

What do you say?

Emily Flippen.

I think that sounds great, Jason.

Jason Hall.

Let's start with what it is.

It's a hard discount grocer and one of the fastest-growing, most dynamic economies in the world.

The business model is really simple, and it's proven.

Instead of offering a lot of different versions of the same product, like you might see at a Walmart, which, by the way, has a pretty huge presence south of the U.S.

border,

BBB Foods offers a far more limited selection and also prioritizes private label products when possible.

This helps in some really, really important ways.

First, it simplifies its inventory management, reducing the number of SKUs that it carries, reducing buyer interactions.

That helps keep operations from the distribution all the way through the store shelf more efficient.

Next, it helps in two massively valuable ways inside the stores.

By having fewer single product choices, it has more room for more product types.

As a result, customers spend less time clogging the aisle trying to choose which dishwashing soap to buy, and more time grabbing more products across more categories.

The business model is really, really working.