Walmart in Mexico targets low prices despite steep inflation, profit jumps By Reuters

By Daina Beth Solomon

MEXICO CITY (Reuters) -Walmart’s Mexico unit on Thursday stated it centered on its low-price technique as inflation rose within the third quarter, serving to the retailer’s web revenue rise greater than 20%.

Walmart (NYSE:) de Mexico, the largest retailer in Mexico, posted web revenue of 11 billion pesos ($535 million) whereas income rose 6.4%, to 176 billion pesos.

“In moments of excessive inflation, our low worth worth proposition turns into much more related for our prospects,” Chief Government Guilherme Loureiro stated in a webcast to debate third quarter outcomes.

He added that the corporate, identified regionally as Walmex, was prepared for the vacation season regardless of international provide chain snags, partly as a result of about 93% of its items are regionally sourced.

“We have been working with nationwide suppliers and logistics suppliers to safe capability … we are going to proceed monitoring delays at ports and different components within the provide chain,” Loureiro stated.

Walmex’s prices within the third quarter grew 5.5% however nonetheless got here in under income progress, whereas the retailer’s revenue margin expanded to eight.8%, the corporate stated.

Within the July-to-September interval it opened 31 shops, principally in Mexico, and a “Walmart Success Companies” warehouse in Mexico Metropolis for out of doors retailers that promote by way of the Walmex web site. https://www.reuters.com/enterprise/retail-consumer/how-pandemic-helped-walmart-battle-amazon-marketplace-sellers-2021-04-14

E-commerce gross sales in Mexico grew 27% within the quarter, reaching 4.5% of complete gross sales and Walmex stated it could quickly permit consumers to pay for on-line orders utilizing Cashi, its e-wallet.

In comparison with earlier within the pandemic, when consumers stocked up on meals relatively than different gadgets, gross sales are once more rising within the basic merchandise and attire areas, the corporate stated.

($1 = 20.6420 at end-September)