Walmex reports 5.2% revenue growth in Mexico in Q3

Date : 28 October 2019

In its Q3 results, Walmex has reported consolidated revenue growth of 4.9% for its operations in Mexico and Central America. Total revenue for its stores in Mexico reached MX$126.98bn (US$6.7bn), representing a 5.2% growth.

Performance driven by continued same-store sales (SSS) growth

Walmex’s performance was mainly driven by strong SSS, however this was reduced when compared to Q3 last year (3.8% in Q3 2019 versus 6.3% in Q3 2018). Sam’s Club continues to be the format with the highest SSS growth.

Total stores in Mexico close to 2,500

During Q3 the business opened 29 new stores in Mexico, taking its total to 2,499. Mexico remains Walmart’s biggest market in terms of store numbers outside of the US.

28 of these openings were in its Bodega Aurrera, as a mix of its three sub-banners (four Bodega Aurrera, five Mi Bodega and 19 Bodega Aurrera Express). It also opened one Superama in the quarter.

Advances in omnichannel

Walmex’s ecommerce sales accelerated by 65% and its gross merchandise volumes grew by 79%. Sales from ecommerce currently represent 1.4% of Walmex’s total sales.

Guilherme Loureiro, CEO of Walmart Mexico and Central America said its priority is to win in on-demand. Walmex now offers 12,000 general merchandise items online, alongside its whole range of groceries and everyday consumer items. All the products can be ordered for same-day delivery.

740 Bodega and Walmart stores (combined) feature kiosks that allow customers to browse an extended range of products, including its wider marketplace offer. This enhances the customer experience in store and allows them to complete their full shop whilst in store, as opposed to cross-shopping at Walmex’s competitors. Total market place sellers have now exceeded 1,000 and this continues to grow.

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