Walmart investment in Central America surges as it retreats from other markets.

The Mexican subsidiary of Walmart, known as Walmex, has been steadily expanding its operations in Central America, increasing the total number of stores- ranging from small bodegas to Supercenters, from 661 in 2014, to 778 in 2018. Revenue from Central America reached US$5.2bn in 2017 and now accounts for almost one-fifth of Walmex revenue, up from 14% in 2014. The statistic is made all the more remarkable considering that Mexico has been one of Walmart’s most profitable operations since it first opened stores there in 1991. According to a report by Bloomberg, Walmex plans to expand into e-commerce and online sales across Central America, which is currently an underdeveloped and underserved market that incumbents in the US and Latin America have largely neglected.

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Photo Credit: Mike Mozart, ‘Walmart’, Flickr