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Walmart de México y Centroamérica

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Walmart de México S.A.B. de C.V.
Company typePublic subsidiary
BMV: WALMEX V
IndustryRetail
Founded1986; 38 years ago (1986)
FounderJerónimo Arango
HeadquartersMexico City, Mexico
Key people
Guilherme Loureiro (CEO)
Eduardo Solórzano Morales (chairman)
RevenueIncrease US$31.7 billion (2012)
Increase US$1.7 billion (2012)
Number of employees
219,767
ParentWalmart (70%)
SubsidiariesBodega Aurrerá
Websitewalmart.com.mx

Walmart de México y Centroamérica, also known as Walmex, is the Mexican and Central American Walmart division. Walmart de México y Centroamérica is Walmart's largest division outside the U.S. as of October 31, 2022, consists of 2,804 stores around the country, including 300 Walmart Supercenter stores and 167 Sam's Club stores.[1] It has been traded in the Mexican Stock Exchange since 1977 (as Cifra).[2] Walmart de México y Centroamérica is the biggest retailer in Latin America.

As of October 31, 2022, Walmart operated 2,804 retail outlets in Mexico, under the Walmart Supercenter, Sam's Club, Bodega Aurrerá, Mi Bodega Aurrera, Walmart Express, and Bodega Aurrerá Express banners. As of 2012, the company was Mexico's largest private sector employer with 209,000 employees. Approximately one-fifth of Walmart stores in the world are in Mexico.[3] It competes with Soriana, La Comer, Chedraui, H-E-B, Casa Ley, S-Mart and Calimax.

Walmex's restaurant division, Vips, was acquired by the Mexican restaurant company, Alsea, in September 2013 for around $626 million.[4] Walmex also operated Suburbia, a chain of department stores which was acquired by Liverpool in 2016.

History

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The company was founded in 1986 as Cifra by Jerónimo Arango. In 1991, Cifra and Wal-Mart Stores, Inc. signed a joint venture agreement. This agreement allowed cooperation between the two companies and the opening of Walmart stores and Sam's Clubs in Mexico. In 1997, Walmart increased its stake by acquiring 51% of Cifra. Cifra was renamed Wal-Mart de Mexico, S.A. de C.V. Walmart again increased its stake in Wal-Mart de Mexico to 60% in April 2000.[5] After completing the acquisition of Walmart's operations in Central America in January 2010, Walmart Mexico changed its name to Walmart de Mexico y Centroamérica.

In 1999, following the implementation of NAFTA, Walmex initiated Mexico's first duty-free importation of fresh Canadian beef from Biological Farm Management Systems, an export company based in Alberta.[citation needed]

International expansion

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Walmart Centroamérica

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In 2005, Walmart entered the Central American market by acquiring 33% of Central American Retail Holding Company (CARHCO) from Dutch retailer Royal Ahold NV. CARHCO operated stores in Guatemala, El Salvador, Costa Rica, Honduras and Nicaragua. In 2006, Walmart increased its stake to 51% and changed the name to Walmart Centroamérica.

Walmart de Mexico y Centroamérica

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In December 2009, Walmart de México acquired 43% of Walmart Centroamérica from Walmart Stores Inc and 40% from two minority partners, paying over $1.4 billion pesos (approximately US$110 million) in cash and shares. In early 2010, the transaction was completed and Walmart de México was renamed Walmart de México y Centroamérica.

In Mexico, Walmart has 2,804 stores, including 300 Walmart Supercenter stores, and 167 Sam's Club stores.

Labor relations

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In 2008, a Mexican court ruled that Walmart de México could not pay its employees in vouchers redeemable only at the store,[6] as it violated an article of the country's Constitution.

In 2020, Walmart de México y Centroamérica was included in the Bloomberg Gender Equity Index for the third time. It is the only company in the self-service sector worldwide that has appeared in this index for three consecutive years. This Index is made up of 325 companies belonging to 50 industries.[7]

Bribery investigations

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An April 2012, investigative report in The New York Times reported that a former executive of Walmart de Mexico alleged that, in September 2005, Walmart de Mexico had paid bribes via local fixers called gestores to officials throughout Mexico in order to obtain construction permits, information, and other favors. Walmart investigators found credible evidence that Mexican and American laws had been broken. Concerns were raised that Walmart executives in the United States "hushed up" the allegations.[8] Reportedly, bribes were given to rapidly obtain construction permits, which gave Walmart a substantial advantage over its business competitors.[3] A follow-up investigation by The New York Times, published December 17, 2012, revealed evidence that regulatory permission for siting, construction, and operation of nineteen stores had been obtained through bribery. There was evidence that a bribe of $52,000 was paid to change a zoning map, which enabled the opening of a Walmart store a mile from a historical site in San Juan Teotihuacán.[9] After the initial article was released, Walmart released a statement denying the allegations and describing its anti-corruption policy. While an official Walmart report states that they found no evidence of corruption, the article alleges that previous internal reports had indeed turned up such evidence before the story became public.[10] Forbes magazine contributor, Adam Hartung, also alluded that the bribery scandal was a reflection of Walmart's "serious management and strategy troubles," stating, "[s]candals are now commonplace... [e]ach scandal points out that Walmart's strategy is harder to navigate and is running into big problems."[8]

As of December 2012, internal investigations ongoing into possible violations of the Foreign Corrupt Practices Act.[11] Walmart has invested $99 million in the internal investigations, which have expanded beyond Mexico to implicate operations in China, Brazil, and India.[12][13] The case has added fuel to the debate as to whether foreign investment will result in increased prosperity, or if it merely allows local retail trade and economic policy to be taken over by "foreign financial and corporate interests."[14][15]

Sale of Banco Walmart Financial Services to Inbursa

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In December 2014, Grupo Financiero Inbursa agreed to acquire Banco Walmart from the chain and create a commercial alliance to offer financial services to supermarket customers with a locally familiar banking entity, such as branded credit cards and banking services, the bank also serves Walmex associates who might need banking services such as bank accounts and salary deposits.[16]

See also

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References

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  1. ^ "Walmart Investor Relations - Financials Investor Relations > Financials". stock.walmart.com. Retrieved 2022-11-15.
  2. ^ "MILENIO.COM » Wal Mart de México logra nivel más alto de ventas en 2006". Archived from the original on 2007-01-13.
  3. ^ a b David Barstow (April 21, 2012). "Vast Mexican Bribery Case Hushed Up by Wal-Mart After High-Level Struggle". The New York Times. Retrieved April 22, 2012.
  4. ^ Elinor Comlay (10 September 2013). "Mexico's Alsea to buy Walmex restaurant chain for 8.2 billion pesos". Reuters.
  5. ^ "Wal-Mart de Mexico, S.A. de C.V. History" listing on Funding Universe.Com
  6. ^ "JURIST | School of Law | University of Pittsburgh".
  7. ^ "Bloomberg's 2020 Gender-Equality Index Expands to Include 325 Public Companies Globally | Press | Bloomberg LP". Bloomberg L.p.
  8. ^ a b Hartung, Adam. "WalMart's Mexican Bribery Scandal Will Sink It Like an Iceberg Sank the Titanic". Forbes. Retrieved 2 July 2012.
  9. ^ James C. McKinley, Jr. (September 28, 2004). "No, the Conquistadors Are Not Back. It's Just Wal-Mart". The New York Times. Retrieved December 18, 2012.
  10. ^ Lydia Dishman (April 22, 2012). "What Walmart Might Do With Allegations of Bribery in Mexico". Forbes.com. Retrieved April 23, 2012.
  11. ^ David Barstow; Alejandra Xanic von Bertrab (December 17, 2012). "The Bribery Aisle: How Wal-Mart Used Payoffs to Get Its Way in Mexico". The New York Times. Retrieved December 18, 2012.
  12. ^ Brown, Abram (15 November 2012). "Wal-Mart Bribery Probe Expands Past Mexico To Brazil, China And India". Forbes. Retrieved 28 December 2012.
  13. ^ Cilfford, Stephanie; Barstow, David (15 November 2012). "Wal-Mart Inquiry Reflects Alarm on Corruption". New York Times. Retrieved 28 December 2012.
  14. ^ Sharma, Malavika (5 December 2012). "India Government Agency Proves Wal-Mart Investments". Bloomberg. Retrieved 28 December 2012.
  15. ^ Thirani, Neha; Kumar, Hari (7 December 2012). "Fact-Checking the F.D.I. Debates". New York Times / International Herald Tribune. Retrieved 28 December 2012.
  16. ^ "Walmart de México y Centroamérica Announces the Sale of Banco Walmart to Ibursa and a Commercial Alliance".
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