Out with Amazon: Wal-Mart Zings Mexico E-Commerce, Dominates Retail Market Patricia Rey Mallen - IBTimes
go to original May 25, 2014

MEXICO CITY - Wal-Mart Stores Inc. has found a golden opportunity in Mexico: in only a year, the retail chain has managed to crack e-commerce, a way of doing business that scarcely existed in the country before.

Along with its local subsidiary, Superama, Wal-Mart last year started offering same-day delivery to its Mexican online customers - and with great success: 92 percent of Mexican online retail purchases are to either Wal-Mart or Superama.

“Online orders are the next frontier for retail,” said HSBC analyst Francisco Chévez. “Once you get people hooked, that is it.”

Online shopping has pushed the company forward. Combining both e-commerce and traditional shopping, over half of Mexicans buy at Wal-Mart. The chain is now the highest-earning supermarket in the country, contributing to 61 percent of total retail revenues.

Even with the rosy numbers, Wal-Mart had a hard 2013. Last year, the Mexican branch of the company saw a 1.3 percent drop in its yearly revenues - just like the rest of the Mexican supermarket chains. With a countrywide economic slowdown, Mexican retail experienced a setback in profits of almost 1 percent from 2012, according to a report by Credit Suisse.

E-commerce has proved a crucial asset for the company in a troubled year. The online option has brought more customers to the chain: 53.3 percent of Mexicans now shop at Wal-Mart, as opposed to 52.1 percent since last year.

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