On a recent event that Wal-Mart concluded with Mexico’s President Enrique Peña Nieto, the company announced that it will invest $1.3 billion on its Wal-Mart Mexico branch. The company aims to better the effort on capitalizing on the growing e-commerce sales and to expand the reach of the fast paced growing of their audiences in a span of 3 years.

Wal-Mart de Mexico is the biggest retailer in the country and private-sector employer in the country. The company’s investment, besides from the transitions for the growing e-commerce, most of it will fall on stores openings and remodeling on the course of the next 3 years, according to Chief Executive Guilherme Loureiro in the event with President Nieto.

The biggest private sector in Mexico tallies 2,300 stores in the country employing 200,000 people that welcome 4 million shoppers on the daily, the company also has 28,000 suppliers. The plans for the next 3 years will circulate around the new distributions center and the revamping of the old ones. “To meet our growth goals and reach more corners of the country, we need to strengthen our logistics infrastructure,” Mr. Loureiro said.

Mexico is a strong competitor in the e-commerce market as it ranks second in terms of total retail dollars. On the other hand, Argentina and Brazil lead in the race on shares of sales transacted online as opposed to Mexico who is quite on the shorter side in terms of online transactions.


Wal-Mart Opens 10,000 Jobs in Mexico

In cooperation of the $1.3 billion investment Wal-Mart for its logistics in Mexico ensues 10,000 job openings for the Mexican in the span of 3 years, an addition to the 200,000 employees the company currently has.

The continuous steps of stabilizing Wal-Mart’s e-commerce market in Mexico is because of the country’s growing 12.3 percent of the region’s e-commerce and reports estimated a 15.6 growth by 2019 at a CAGR of 24.8 percent. An expected growth of 27 percent in online retail sales in Mexico or a $7.2 billion is expected in this year and by 2018 a forecast of $11 billion in e-commerce sales or just under the 2.5 percent of the country’s total retail sales.

 The announcement is just in the middle of the Mexicans’ dilemma for the future of U.S.-Mexico trade and investment relations under the reign of President-elect Donald Trump. A change to the North American Free Trade Agreement is pushed by President Trump and he has also been lobbying U.S. companies not to move jobs to Mexico.

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