- Title: Walmex is well-positioned for economic downturn, CFO says
- Date: 9th August 2017
- Summary: MEXICO CITY, MEXICO (AUGUST 08, 2017) (REUTERS) WALMART CFO FOR MEXICO AND CENTRAL AMERICA, OLGA GONZALEZ, WALKING IN OFFICE REUTERS JOURNALIST TALKING WITH GONZALEZ JOURNALISTS WITH GONZALEZ (SOUNDBITE) (Spanish) WALMART CFO FOR MEXICO AND CENTRAL AMERICA, OLGA GONZALEZ, SAYING: "We feel we have done the foundational work so that if we have more negative macroeconomic conditions, or if they worsen, we can manage to present an offer of value that will be high. Also, this business model that is primarily food will have less of an impact during negative cyclical swings in the economy." REUTERS JOURNALIST ASKING QUESTION GENERAL VIEW OF INTERVIEW (SOUNDBITE) (Spanish) WALMART CFO (CHIEF FINANCIAL OFFICER) FOR MEXICO AND CENTRAL AMERICA, OLGA GONZALEZ, SAYING: "We are investing about 10% of capex (capital expenditure) which has been assigned to e-commerce. This is partly in the system." GONZALEZ AND JOURNALISTS STANDING UP AT END OF INTERVIEW AND SHAKING HANDS WITH JOURNALISTS
- 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: LVA0016TFOQPV
- 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.
- Copyright Holder: REUTERS
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