Walmart to Invest Over $1 Billion for Growth in Mexico
MEXICO - Watch out Mexico, Walmart is coming for your retail dollars in a big way. At an event with Mexican President Enrique Peña Nieto, the company announced it will invest $1.3 billion to grow its presence there over the next three years.
"This investment affirms our confidence in Mexico, strengthening the logistical infrastructure to achieve our growth goals," said Guilherme Loureiro, CEO of Walmart de Mexico y Central America (Walmex), according to CNN. "We are attracting larger investments in a world of huge uncertainty.”
Key areas that will see a boost in funding include:
- Bolstering logistics infrastructure
- Building distribution centers
- Expanding existing distribution centers
In total, Walmart says the investment will create around 10,000 direct jobs, both new and permanent.
"Mexico is one of the few economies in the hemisphere that is growing,” explained President Peña Nieto. “[Mexico] has become the main economic engine of America.”
According to CNN, the Walmex branch is the second largest company in the Mexican Stock Exchange, with nearly $24 billion in revenue reported in 2015. Its holding includes stores in Mexico, Guatemala, Honduras, El Salvador, Nicaragua, and Costa Rica.
This news comes on the heels of last year’s announcement of massive store closures, including 60 in Brazil and 55 in “Latin American markets.” At the event, Loureiro further noted that Walmart welcomes 4 million shoppers daily at its Mexican stores, has 28,000 suppliers, and employs more than 200,000 people.
As the company continues to grow its Mexican presence, AndNowUKnow will bring you updates on the shifting retail landscape.