- Title: Walmex is well-positioned for economic downturn, CFO says
- Date: 9th August 2017
- Summary: MEXICO CITY, MEXICO (FILE) (REUTERS) GENERAL VIEW OF WALMART SHOP SHOPPER PUSHING A TROLLEY SHOPPERS ENTERING AND EXITING WALMART WALMART LOGO ON STORE SALES BANNER AT STORE SHOPPERS IN STORE SALES ASSISTANT TALKING TO CUSTOMER GENERAL VIEW OF SHOPPERS IN STORE
- Embargoed: 23rd August 2017 03:18
- Keywords: Reuters Summit Reuters exclusive with Wal Mart CFO for Mexico and Central America Olga Gonzalez Mexico economy slowdown
- Location: MEXICO CITY, MEXICO
- City: MEXICO CITY, MEXICO
- Country: Mexico
- Topics: Economic Events
- Reuters ID: LVA0026TFOQPV
- Aspect Ratio: 16:9
- Story Text:Mexico's biggest retailer, Wal-Mart de Mexico, is prepared to confront "difficult moments" should the economy slow down, its chief financial officer said, at a time consumers have been hit by high interest rates and inflation.
Walmex's core food business is relatively insulated from economic swings as consumers tend to make cuts elsewhere in tight times, said Olga Gonzalez, who began serving as CFO (chief financial officer) in July. With brands ranging from the budget Bodega chain to the higher-end Superama line, Walmex can meet Mexican consumers at a variety of price points.
Walmex's net profit in the second quarter more than doubled, boosted by the sale of clothing chain Suburbia to department store and shopping mall operator El Puerto De Liverpool. The company has been working to nudge its business toward e-commerce. Online sales rose about 35 percent in the second quarter, though the segment remains less than 1 percent of Walmex's total sales.
The Mexican market presents some barriers to e-commerce, with relatively low internet penetration and limited consumer credit, Gonzalez said. Yet Walmex's dense concentration of stores in cities has proved helpful in shipping goods from stores to consumers' homes, a thorny problem in e-commerce.
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