MEXICO: Walmex Q4 profit down on price cuts
The company, majority-owned by retail giant Wal-Mart, said its net profit fell 12.8% to MXN7.3bn. Its operating profit was down 7.2% at MXN10.44bn.
Walmex revealed its gross profit margin was down 60 basis points in the last three months of 2013 to 22.2%.
Describing 2013 as "a year of great challenges", company chief executive Scot Rank said: "Given the reduction in disposable income and the decrease in consumer confidence, we placed our customer at the centre of our activities and invested strongly in prices."
Mexico's retail sector has been generally impacted in recent months by a loss of consumer confidence and depressed economic indicators.
Net sales were up 3.5% at MXN123.26bn.
Wal-Mart is the largest retailer in the world. The company has retail stores worldwide, with 10,773 stores recorded across 27 countries at the end of January 2013. Despite the dominant position the co...
Wal-Mart de México is by far the leading and most influential chained grocery retailer in Mexico. Its strategy of offering low prices to attract consumers has been replicated by all other chained groc...
The tough financial situation in 2012-2013 forced Wal-Mart to be more cautious about expansion. The company plans to upgrade outlets and close underperforming stores in the forecast period. For exampl...
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