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Walmart wants to dispose of its subsidiary in Mexico

By Angela Gonzalez-Rodriguez

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Mexico’s largest retailer – that is Walmart de Mexico or Walmex - is looking to offload speciality store Suburbia in order to focus on its core big-box business.

“The process is in its early stages and there are no assurances that a transaction will take place or other terms and conditions of a potential transaction,” advanced the company in a statement earlier this week.

Walmex, as the chain is known locally, said in a statement issued to shareholders and the general public on Monday that it would start to consider third party offers for the apparel division.

Suburbia has 117 stores across 42 cities in 32 Mexican states, and for the year ended Dec. 31, 2014, Suburbia accounted for 3.5 percent of consolidated sales at Walmex. As reported by ‘El Economista’, analysts believe the chain store could sell for as much as 34 billion pesos (circa 2 billion dollars).

The news followed Walmart’s announcement last week that it would close 115 loss-making stores in the Latin American market, including 60 in Brazil, as part of a restructuring effort.

WALMART