Wal-Mart de Mexico SAB, (WMMVY) Mexico's largest retailer and a division of the US Wal-Mart (WMT), said Tuesday it plans to open 205 new stores and restaurants this year, a 12.6% increase.
The plans include developing the "Mi Bodega Express" format, chief executive Eduardo Solorzano said. The format will be more of a neighborhood store than a convenience market and said the results of two such existing stores have been encouraging.
The 2008 expansion plan also includes 17 Wal-Mart Supercenters, 79 Bodega Aurrera stores and 30 VIPs restaurants. Currently Walmex has 1,023 stores and restaurants.
Results in Mexico have been good with the stock of Walmex up 40% the past two years and earnings have grown 32% over that same time period.
This is where Wal-Mart needs to be using its capital, internationally. International sales are growing 20% annually and unlike the US, both the room and expand and customers hunger for the product is vast...
Disclosure ("none" means no position): Long Wal-Mart, none
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