Wal-Mart de Mexico Sales Rise 15% on Year in June Amy Guthrie - WSJ.com
go to original July 10, 2012

MEXICO CITY - Retailer Wal-Mart de Mexico SAB said Monday its sales rose 15% in June from the same month a year earlier to 32.17 billion pesos ($2.39 billion), with comparable sales gains in both Mexico and Central America.

Walmex, as the unit of Arkansas-based Wal-Mart Stores Inc. is called, said its Mexican sales rose 12.3% to MXN27.38 billion. On a comparable basis, counting only stores that have been in operation for at least a year, sales in the country rose 5.3% versus June 2011 as customers spent 6.1% more per visit but the number of transactions fell by 0.8%.

The Mexican sales result was better than expected, with Credit Suisse having predicted a 4% year-on-year rise in same-store sales for Walmex Mexican outlets last month.

Walmex's Central American sales rose 33.2% in Mexican peso terms to MXN4.79 billion in June. On a constant currency basis, sales in the region rose 13.3% from a year earlier while same-store sales increased 5.8%.

For the first six months of the year, Walmex said its total sales increased 12.9% from the same period in 2011, to MXN193.37 billion, with Mexican sales accounting for 86% of that figure.

Walmex said it opened 25 new outlets in Mexico and one in Central America last month, plus three more in Mexico so far in July and another in Central America, bringing its number of stores and restaurants in operation to 2,813 units.

In June, Walmex reduced its store expansion plans following heightened scrutiny due to accusations the company bribed public officials to speed store permits in Mexico.

The retailer now sees its Mexican floor space growing 8% in 2012 and through the first quarter of 2013, compared with a previous growth target of 12% for 2012. In Central America it still plans to grow its sales space by 9%.

In all, Walmex plans to open between 325 and 335 new stores and restaurants this year through March 2013.

Write to Amy Guthrie at amy.guthrie@dowjones.com.

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