Walmart has planned to close down 30 stores in Brazil next year. As per a report, net sales in Brazil decreased by 0.4 per cent in the third quarter of the current fiscal. Industry analysts observe that Walmart has over the past four years cut prices that along with rising wages and operating costs have eroded profitability.
Struggling to match the competitive-level in Brazil, which is Latin America’s largest economy, the world’s leading retailer has in the last four years slashed prices that along with rising wages and operating costs have eroded profitability.
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The reports suggest that the retailer is reviewing its portfolio and will do what’s best suited for the business. Walmart currently operates 588 stores in Brazil and the decision would shutter about 5 per cent of Brazil’s current store-base. The brand has also started leasing part of some stores to home furnishings retailers in several regions across the country to generate additional revenue. It has also started selling non-core businesses in Latin America, including property in Chile and a restaurant chain in Mexico.
