Walmart has reported a 0.5% increase in total revenue for Q2 of fiscal 2017, with what it called "overall...another solid performance" from its international business. We look at how it fared in key Latin American markets.
International performance positive across most markets
Internationally, net sales declined by 6.6% to $28.6bn, reflecting the impact of currency, with sales up 2.2% on a constant currency basis. Nine of its 11 international markets delivered positive comp store sales, with Walmex leading the growth.
Brazil: growth in challenging environment
Against a background of ongoing economic recession, comp sales increased by 4.7% although this was fuelled by inflation. Ticket was up 8.2%, while traffic fell by 3.5%. The wholesale format continues to perform well and delivered a double digit increase in comp sales. Walmart said it has now completed store systems integration, which now allows all banners to operate under a single financial system, giving it better visibility of business outcomes and improving the alignment of marketing initiatives.
Mexico: momentum across all formats
At Walmex, comp sales were up 7.3% as it saw strong momentum across all formats, divisions and countries, outpacing the rest of the self-service market according to industry body ANTAD. This included Sam's Club, where the retailer delivered solid member base growth, reflecting the improvements made to drive membership value and provide attractive product ranges. In August, Walmart announced the agreement to sell the Suburbia clothing business to Mexican department store chain Liverpool, continuing its divestment of non-core operations.
Click here for details of the wider Walmart results announcement.