Wal-Mart de Mexico's 2016 Sales Rose 11.9%
January 05 2017 - 6:35PM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- Mexico's largest retailer, Wal-Mart de Mexico
SAB, said Thursday that its sales rose 11.9% in 2016 amid strong
consumption in Mexico and relative strength in Central American
currencies against the Mexican peso.
Walmex, as the unit of Arkansas-based Wal-Mart Stores Inc. is
known, said sales last year totaled 528.6 billion Mexican pesos
($24.6 billion). Momentum continued into December, when sales
increased 11.6% from a year before.
Walmex's sales in Mexico, where it ended the year with 2,291
stores, were up 9.1% and same-store sales 8% higher than in
2015.
In Central America, sales at the company's 731 stores rose 8.3%,
and 4.9% on a comparable-store basis.
Walmex plans to report its financial results for the fourth
quarter on Feb. 15.
Despite sluggish economic growth in Mexico, which is expected to
have ended the year around 2.1%, private consumption fared well in
2016 as a result of employment growth coupled with low inflation
and wage increases above inflation.
Retail association Antad, of which Walmex is a member, reported
sales at its member chains up 9.9% in the first 11 months of the
year, and same-store sales growth of 6.6%. Full-year sales of new
cars and light trucks rose 19% to a record 1.6 million units,
according the Mexican association of auto dealerships.
Clouds appear to be looming over consumers going into 2017,
however, as higher gasoline prices and a weakening peso threaten to
push inflation higher, prompting the central bank into even more
interest-rate increases.
Bank of America Merrill Lynch expects inflation will accelerate
to 5.3% by midyear and end the year at 5% -- outside the Bank of
Mexico's 2% -- 4% target band. Consumer prices were up 3.5% as of
mid-December.
Higher inflation will push up interest rates, causing credit
growth to slow and curbing wage gains, eventually affecting
consumption, the bank said in a report.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
January 05, 2017 18:20 ET (23:20 GMT)
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