Nearly 30% of the investment will be allocated to building new stores and clubs.
Walmex, Walmart Inc.’s Mexico and Central America business unit, is investing to upgrade its stores, supply chain and technology.
The company plans to invest nearly $1.5 billion in its operations in the region in 2023, which is 27% more than it spent last year. About 45% of the investment will be dedicated to store remodels and maintenance, improving omnichannel capabilities and implementing projects to increase energy efficiency and sustainability, as well as accessibility for people with disabilities.
An additional 29% of the investment will go towards building new stores and clubs. In 2023, new stores are expected to contribute between 1.2% and 1.4% to total store growth. Bodega will continue to be the company’s main growth format.
In other allocations, 12% of the investment will be used to expand and modernize Walmex’s supply chain and 14% will go towards technology. Specifically, the tech investment will be allocated to strategic omnichannel and technology projects to offer a better digital shopping experience, to increase and improve the company’s analytics capabilities to know customers better, and in automation at stores and distribution centers to increase employee productivity.
Walmex also said it had received approval from Mexican authorities to purchase a Mexican electronic payments provider, reported Reuters. Walmex will also launch a health membership product, the report said.