Walmex to Invest $805 million, Open 252 Stores

Mexico City Wal-Mart de Mexico SA on Thursday said it plans to boost spending on new stores and staff in 2009 and open 252 new outlets despite Mexico's slowing economy.

Walmex, Mexico's largest retailer, will increase investments by 4% over 2008 to 11.8 billion pesos ($805 million), creating 14,500 new jobs.

It will also slash prices on 1,700 items to draw more customers. That strategy helped it post an 11% increase in sales and a 5% gain in net profit last year as the economic downturn fueled demand for its discount goods.

Mexico has been battered by the recession in the United States, which buys 80% of the products it sells abroad, according to the Associated Press. Mexican economic growth slowed to 1.5% in 2008 from 3.3% the year before, as consumer credit tightened and money sent home by migrants fell.