Case Study on WalMart in Mexico - Walmex
Wal-Mart has a winner in its Wal-Mart de Mexico operations, as sales growth in that country has outshined that of U.S. operations for quite a while now.Walmart set to open banks in Mexico
WalMart Stores, Inc. (WalMart), the world's largest retailer's Mexican arm WalMart de Mexico SAB de CV (Walmex), laid out plans to open its first in-store bank branch in Mexico by June 2007. Walmart's branches of the venture will be known as Banco Wal-Mart de Mexico Adelante. Walmart is the second retailer to gain entry to Mexico's banking sector after Mexican retail and financial services group Elekra (Banco Azteca, in 2002).In 1991, WalMart began its operations in Mexico by forming a joint venture with Mexico's retail chain Grupo Cifra SA de CV (Cifra). Cifra, a major player in Mexican organized retail was the family-owned retail business of Mexican businessman, Jeronimo Arango. In 1994, Mexico suffered due to economic setbacks. During this period, retailers like Sears Roebuck & Co. and Kmart sold out their stakes and quit the country. However,Wal-Mart stayed on.
Walmex got government approval easily to set up in-store bank branches in Mexico. This was because of its reputation as a successful retailer that met the daily needs of the Mexican people. Walmex entry aimed at making financial products more cheaper to millions of Mexicans, even those who did not have bank accounts. And by having banking operations within its stores Walmex would improve the customers to its stores and also increase sales.
WalMart Background
In 1962, Sam Walton founded Wal-Mart. Sam Walton had earlier worked at JC Penney Corporation, Inc. and also ran Ben Franklin franchises. Sam's vision that constantly changing consumer behavior would lead to discount stores led to Wal-Mart's success.In 145 cities across Mexico, Wal-Mex has more than 900 stores and restaurants in Mexico including Bodega food and general merchandise discount stores and Superama supermarkets, Suburbia apparel stores and Vips and El Portón restaurants. Wal-Mex also runs about 195 Wal-Mart Supercenters and SAM'S CLUB warehouses, which generate about 55% of the company's sales. More Soon...
Case Study Keywords: Mexico, Wal-Mart, Walmex, WMT, Organized Retail Industry, Business Strategy, International Operations, Consumer behaviour
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