Walmart plans to close down its thirty stores in Brazil by next year. These thirty stores accounts for five percent of the total in the country. The move is considered to be a part of the world’s largest retailer’s global strategy to shut down its operations in poor performing markets, which includes Brazil.
The sites are expected to be sold to other local players. But Walmart refused to comment on the closing down news, which first appeared in Brazilian newspaper Valor Economico. Couple of months back Walmart CEO Doug McMIlon said that he would look into the underperforming markets. Since then the retailer had been selling off its stores and businesses in Latin American market.
Walmart has to cut prices during the last four years to stay alive in the Latin American market. But with escalating wages, increasing operational costs and growing competition in the local market, the company has finally forced to shut a part of its stores.
Meanwhile, Falabella said they are not negotiating to lease land from Walmart in Brazil. “Neither Dicico or Sodimac chain are in negotiations to lease the shut Walmart stores in Brazil,” the firm said in a statement.
He added, “Our company is focused on development in the state of Sao Paulo, which has just opened its second store Sodimac Home Center and Sodimac Constructor in the town of Ribeirao Preto.”