Walmart de Mexico aka Walmex, controlled by Walmart Stores, is mulling over investing US $ 829 million (14.7 billion Pesos) in 2016, about 17 per cent more than last year, when it invested 12.5 billion Pesos and opened 97 new stores. Interestingly, the retail giant will not utilise these funds for further expansion this time, but will use it to increase productivity for better profit margins.
The retailer has made this move to focus on making sure that present stores generate more money, as its revenue grew by 11 per cent last year, but net profits plunged drastically by 13.3 per cent. For the fourth quarter ending December 2015, despite noting dip in profits as mentioned, Walmex’s sales zoomed 13 per cent to 145.9 billion pesos, with like-for-like sales up 8.6 per cent in Mexico.
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Explaining the retailer’s move, Guilherme Loureiro, Chief Executive, of the company averred, “To reach those goals we are changing our way of working. We aim to grow sales at an average clip of 7 per cent a year and boost e-commerce, where revenues are expected to grow 10 per cent on average over the next four years.”
Walmart de Mexico comprises about 2,400 stores around the country, including 256 Walmart Supercenters stores and 161 Sam’s Club stores.