Walmart plans heavy investment in Central America and Mexico

Walmex, Walmart's subsidiary in Mexico and Central America, plans to increase its spending by 27 percent in 2023, amounting to 27 billion pesos (about €1.42 billion). Almost half of that will be spent on renovations of existing stores, and nearly 30 percent will go towards new stores. A further 12 percent will be allocated to improving and modernising the supply chain. By comparison, last year it spent 21.3 billion pesos (about €1.116 billion) on capital expenditure due to supply chain failures.

Walmart is focusing on health in the coming years. The world's largest retailer will be expanding its plan for more advanced healthcare. It will introduce a health membership that will provide customers with unlimited 24/7 remote medical services, nutrition services, an emergency ambulance service, discounts on consultations with specialists, and discounts on medical check-ups, for a fee. The project will involve 1,500 pharmacies and 500 medical clinics across the region. In addition, Walmex has received permission from the Mexican authorities to purchase one of the electronic payment providers.

The plan will also be expanded in the U.S.

Meanwhile, the company has announced that it will open 28 new medical centres in the US next year, including the first in Missouri and Arizona. By the end of 2024, it plans to have more than 75 Walmart Health centres across the US. By the end of 2022, it operated 32 of them.

The company's sources of income will change in the coming years

According to the company's chief financial officer, John David Rainey, Walmart's profits will gradually come mainly from its online sales, delivery services and from advertising on Walmart.com, not from the sales of goods in the 10,000 stores, which currently make up the majority of the total profit. Rainey expects that contribution to change in the next five years. Spending is shifting away from goods back to services like the aforementioned health care, rent and recreation.

 

The goal is digitization

As customers increasingly rely on e-commerce, it allows Walmart to provide them with greater convenience and more distribution points. The company's retail media business, rebranded as Walmart Connect in 2021, offers brands advertising space in its U.S. stores and allows it to use shopper data to streamline advertising, even on websites and apps that Walmart doesn't own. The company's various extensions are a sign of innovation, and their reach extends into many areas. Such diversification gives the company's shares a certain stability and makes it a decidedly interesting item for investors' portfolios. As we can also see by looking at the five-year performance of the company's stock market value, it has grown by 56 percent, hovering around $139 per share over the past week. *

 

* Past performance is no guarantee of future results

 

walmart

Walmart's share performance over the past 5 years. (Source: Google)

 

 

 

Olivia Lacenova, an analyst at Wonderinterest Trading Ltd.

 

This text constitutes marketing communication. It is not any form of investment advice or investment research or an offer for any transactions in financial instrument. Its content does not take into consideration individual circumstances of the readers, their experience or financial situation. The past performance is not a guarantee or prediction of future results.

🍪 Cookies

We use cookies to store, access and process personal data to give you the best online experience. By clicking Accept Cookies you consent to storing all cookies and ensure best website performance. You can modify cookie preferences or withdraw consent by clicking Cookie Settings. To find out more about cookies and purposes, read our Cookie Policy and Privacy Notice.

Cookies settings


Cookie Control

What are cookies?

Cookies are small text files that enable us, and our service provides to uniquely identify your browser or device. Cookies normally work by assigning a unique number to your device and are stored on your browser by the websites that you visit as well as third-party service providers for those website. By the term cookies other technologies as SDKs, pixels and local storage are to be considered.


If Enabled

We may recognize you as a customer which enables customized services, content and advertising, services effectiveness and device recognition for enhanced security
We may improve your experience based on your previous session
We can keep track of your preferences and personalize services
We can improve the performance of Website.


If Disabled

We won't be able to remember your previous sessions, that won't allow us to tailor the website according to your preferences
Some features might not be available and user experience reduced without cookies


Strictly necessary means that essential functions of the Website can not be provided without using them. Because these cookies are essential for the properly working and secure of Website features and services, you cannot opt-out of using these technologies. You can still block them within your browser, but it might cause the disfunction of basic website features.

  • Setting privacy preferences
  • Secure log in
  • Secure connection during the usage of services
  • Filling forms

Analytics and performance tracking technologies to analyze how you use the Website.

  • Most viewed pages
  • Interaction with content
  • Error analysis
  • Testing and Measuring various design effectivity

The Website may use third-party advertising and marketing technologies.

  • Promote our services on other platforms and websites
  • Measure the effectiveness of our campaigns

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 92.59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.