Mexico City, D.F. — Walmart de México and Central America have announced plans of adding an additional 19 percent this year in their Latin American market with capital investments of 17 billion peso.
The move comes after thier latest annual analysts meeting. Pedro Farah, CFO of the company, detailed that 38 percent of the resources will go to the units currently in operation for remodeling, 31 percent to new stores, 13 percent to logistics, 10 percent to technology and e-commerce and the remaining 8 percent to perishables.
In all, the company plans to increase its investment into the Latin American market by 19 percent for 2017, the largest increase since 2011. As part of the new investments, Walmart also intends to open a second meat cutting plant in the city of Monterray.
Guilherme Loureiro, Walmart CEO said they will continue to invest to achieve the goal of doubling the size of Wal-Mart de México and Central America in terms of revenue by 2024.
“We are focused on expanding our competitive advantage in selling price, costs and productivity. We will continue to build foundations and invest to be a great company in the future,” h e added.
Walmart’s commercial real estate director, Gaston Wainstein, said that the company has already acquired 73 percent of the permits for the stores scheduled to open in 2017.
“With regard to the stores in operation, we will be allocating a similar amount to 2016. In new units we will be adding more square meters, but also reducing the cost per square meter, which is very good,” said Farah.
As part of its 2017 expansion plan, the firm will launch new store prototypes. One of them is from Bodega Aurrera, which is now 20 percent more profitable per square meter and will require 13 percent less investment.
“We are reducing the opening times of a year and a half to between seven and eight months. Of our new prototypes, we have Superama which is 73 percent more efficient in its capital use than the previous prototype, something that opens up the possibility of growing five times more potential than we had planned before,” he explained.
Over the next 10 years, Walmart’s goal is to invest $1.3 billion in logistics, doubling its sales.