Walmart Targets Growth and Local Production in Mexico

Walmart de México y Centroamérica, the regional arm of the world's largest retailer, has committed to a substantial $6 billion peso investment in Mexico by 2025, signaling strong confidence in the country's economic trajectory and aligning its strategy with the government's 'Plan México' initiative.

The investment, announced via the Secretariat of Economy, is designed to significantly expand Walmart's footprint, modernise its supply chain, and notably increase the proportion of locally manufactured goods sold across its extensive network of stores. The company anticipates this capital injection will generate approximately 5,500 direct jobs, augmenting its already considerable workforce of 200,000 employees in Mexico.

A core objective outlined by the company and endorsed by President Claudia Sheinbaum Pardo is to lift the percentage of 'Hecho en México' (Made in Mexico) products sold. Currently, domestically sourced goods account for a robust 83 per cent of Walmart's sales in the country, a figure the retailer aims to build upon.

The expansion plan includes the construction of additional retail outlets across its various formats – Bodega Aurrera, Sam's Club, Walmart Supercenter, and Walmart Express. Furthermore, two new, technologically advanced distribution centres are slated for construction, strategically located in the central El Bajío region and the state of Tlaxcala. These facilities will reportedly leverage robotics and artificial intelligence, adding to the 21 distribution centres Walmart currently operates in Mexico and enhancing its logistical efficiency.

The announcement underscores Walmart's integration into the Mexican economy and its alignment with government priorities. Ximena Escobedo, Head of the Productive Development Unit at the Secretariat of Economy, speaking on behalf of Secretary Marcelo Ebrard, emphasized the investment's importance within the 'Plan México' framework. She highlighted Walmart's role as a major employer and its reliance on a wide base of domestic suppliers – numbering 30,000, of which 85 per cent are small and medium-sized enterprises (SMEs). Ms. Escobedo noted that Walmart was among the first major companies to support the government's 'Hecho en México' campaign.

Ignacio Caride, President Executive and Director General of Walmart de México y Centroamérica, confirmed the scope of the investment. "This $6 billion investment will allow us to open more stores... generating approximately five thousand five hundred direct jobs," he detailed, emphasizing the role of the new distribution hubs in supporting this growth.

Mr. Caride also reflected on the company's deep roots in the country. "Walmart arrived in Mexico more than 65 years ago, and we look forward to the next 30, 60, or 90 years here," he stated. He stressed the focus on strengthening the omnichannel shopping experience for the over five million customers who frequent Walmart's stores daily. "Many thanks for your confidence. Count on our full commitment," Mr. Caride concluded.

Walmart's significant capital commitment represents a major vote of confidence in the Mexican market's potential, occurring amidst a broader government push to strengthen domestic production and supply chains. The investment's focus on both physical expansion and technological upgrades to its logistics network positions the retailer to capitalize on evolving consumer demands while contributing tangibly to local employment and supporting a vast network of Mexican producers.