Major retailer of Mexico, Walmart de Mexico SAB is reportedly mulling over selling its Suburbia clothing-store chain to stay focused on its staple business of big-box stores.
Walmex, unit of Arkansas (USA)-based Walmart Stores Inc., has said that it will ponder over offers for Suburbia, which has 117 stores situated in 44 cities and spread across 29 Mexican states. The division made 3.5 per cent of Walmex’s total sales in the year 2014. In 2015, Walmex noted surge in sales which rose by 11 per cent compared to 2014. Acceleration in the Mexican economy and a turnaround at its Sam’s Club membership stores have been touted as the reasons for rise in sales last year.
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In last few years, the retailer has locked deals with other companies – sold its restaurant chain to Alsea SAB, and its bank unit to Grupo Financiero Inbursa; however, the selling of Suburbia clothing-store chain is still assumed to be at its early stages, and there’s no guarantee that a sale will be made, Walmex added.
Walmart’s Mexico division, the largest outside the US as of 2015, consists of more than 2,290 stores around the country, including Walmart Supercentre stores and some 250 Sam’s Club stores. Walmart operates 2,317 retail outlets in Mexico and employs around 209,000 people.
