Mexico small shops hit by higher extortion fees and inflation

The National Alliance of Small Merchants (ANPEC) warned that organized crime groups have raised extortion demands on neighborhood stores from 200 to a minimum of 500 pesos, pressuring thousands of Mexican small retailers. The organization’s “Pulse of the Neighborhood Store 2026” survey found that 89% of shop owners say inflation has hurt their business more than a year ago, while 91% report recent price hikes from suppliers. To retain customers, 82% have cut their own profit margins and 89% have raised prices in the past six months.

Electricity bills are the most burdensome operating cost, with 83% of shopkeepers naming power charges as the biggest expense, often threatening the viability of businesses that earn up to 20,000 pesos a month. Extortion remains a major threat: 20% of surveyed stores experienced it in the last six months, and criminal groups are also seeking control over the distribution of products such as cigarettes, chicken, eggs and grains in several states, including Mexico City, State of Mexico, Sinaloa, Zacatecas, Tamaulipas, Chiapas, Guerrero and Guanajuato.