Walmex reports 2019 revenue growth of 5.7%

Date : 14 February 2020

Oliver Butterworth

Retail Analyst

In its Q4 results, Walmex (Walmart’s operations in Mexico and Central America) has reported total revenue of MX$153.7 bn (US$8.3 bn) for Mexico. This represents growth of 5.3% year-on-year (YoY) (3.9% in Central America and 4.7% consolidated).

For 2019 it reported revenue of MX$532.2 bn (US$28.6 bn) in Mexico, a 5.7% increase YoY (3.4% in Central America and 4.9% consolidated).

Strong same-store-sales driving performance

Walmex said same-store-sales (SSS) was its key growth driver. Stores in Mexico have delivered an impressive SSS growth of 11.1%, based on a two-year stack (2.5% in Central America). In Q4 SSS for stores in Mexico were up by 3.9% versus the previous quarter. 

In Mexico, Walmex delivered positive results across all regions and banners, with stores in the north and south of the country delivering the highest SSS growth.

Sam’s Club has been its highest performing banner over the last four years. During this time, it has been heavily focused on improving its members’ experience, which is delivering impressive results.

Walmex continues to rapidly expand its Bodega format

Walmex opened 134 stores in Mexico in 2019 (27 in Central America), of which 69 were opened in Q4. Most of these openings were under its Bodega discount banners. New stores contributed to 1.7% of growth (at a consolidated level).

Strong advances in omnichannel in 2019

Advancing in omnichannel was one of the business’s five strategic pillars in 2019. In Q4 ecommerce sales in Mexico grew by 47% and 52% for the full year (up from full year growth of 42% in 2018). For 2019 ecommerce sales represented 1.5% of total sales.

Gross merchandise volume grew by 53% in Q4 and 61% for the full year, which it says was driven by grocery. Walmex now has close to 1,300 sellers on its marketplace.

Omnichannel highlights;

  • 894 digital kiosks have now been installed in a mix of Walmart and Bodega stores
  • 1,115 Pick-up locations across all formats, where customers can pick up both grocery and general merchandise (GM) orders for free
  • 256 stores offering on-demand (same-day delivery) with around 12,000 GM items

Strengthening logistics in ecommerce and omnichannel

In 2019 Walmex opened two new distribution centres in Mexico, in the commercial cities of Guadalajara and Monterrey. Both are dedicated to ecommerce. A further three are under construction (one for ecommerce and two for omnichannel logistics) and these are expected to open in the first half of 2020.

For further information on grocery retail in Mexico, please see our presentation here.