Walmart has announced plans to expand its business in Mexico over the next five years with a $6 billion investment to add 1,500 new stores. This will add to the 3,200 stores Walmex now operates in Mexico.
Walmex includes stores in Central America, but the investment will focus on operations in Mexico. Walmex Chief Executive Officer Ignacio Caride said the investment would create 5,500 direct jobs.
The majority of the new stores will be branded Bodega Aurrera. The low-cost grocery format is one of the four retail brands Walmart operates in Mexico, with the others being Sam’s Club, Walmart Supercenter and Walmart Express.
As part of the investment, the company said it will continue advancing the construction of two distribution centers in the Bajío region, located northwest of Mexico City, and in the state of Tlaxcala, east of Mexico City. The centers will feature robotics and artificial intelligence technology.
Walmex said 83% of the goods it sells in the country are made in Mexico and its commitment to the country’s economic development is reflected in its supply chain, which is composed of more than 33,000 suppliers, 85% of which are small and medium businesses.
Walmex shares listed on the exchange in Mexico City traded 2% higher on the news announced late last week. On Tuesday (April 1), Walmex shares traded at $56.90, up 52 cents in light volume. Over the past 52 weeks, the shares have traded between $51.58 and $69.45.
