Wal-Mart de Mexico Plans 20% More Investment in 2018
By Anthony Harrup
MEXICO CITY--Retailer Wal-Mart de Mexico SAB intends to invest 20.9 billion Mexican pesos ($1.12 billion) in 2018, dividing most of the money among new stores, remodelings and logistics.
The unit of Bentonville, Arkansas-based Walmart Inc., also known as Walmex, said Tuesday that 30% of the investment will be on maintenance and remodeling of existing stores, 29% on store openings, and 28% on logistics.
The retailer is earmarking 10% of the money for technology and the development of its omnichannel strategy, and the remaining 3% to upgrade infrastructure for handling perishables.
Walmex "will be investing in high-return projects and building the foundations for the long term," the company said in a release.
The planned capital expenditure is 20% more than the 17.4 billion pesos that Walmex invested in 2017.
Walmex is Mexico's largest retailer with sales last year of around $30 billion, accounting for about 6% of Walmart Inc.'s global sales.
The company operated 2,367 stores in Mexico at the end of February, and 783 in Central America.
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(END) Dow Jones Newswires
March 06, 2018 21:22 ET (02:22 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.