Professional Documents
Culture Documents
Issues:
In 1991, WalMart began its operations in Mexico by forming a joint venture with Mexico's retail
chain Grupo Cifra SA de CV (Cifra). Cifra, a major player in Mexican organized retail was the
family-owned retail business of Mexican businessman, Jeronimo Arango. In 1994, Mexico
suffered due to economic setbacks. During this period, retailers like Sears Roebuck & Co. and
Kmart sold out their stakes and quit the country. However,Wal-Mart stayed on.
Walmex got government approval easily to set up in-store bank branches in Mexico. This was
because of its reputation as a successful retailer that met the daily needs of the Mexican
people. Walmex entry aimed at making financial products more cheaper to millions of
Mexicans, even those who did not have bank accounts. And by having banking operations within
its stores Walmex would improve the customers to its stores and also increase sales.
WalMart Background
In 1962, Sam Walton founded Wal-Mart. Sam Walton had earlier worked at JC Penney
Corporation, Inc. and also ran Ben Franklin franchises. Sam's vision that constantly changing
consumer behavior would lead to discount stores led to Wal-Mart's success.
In 145 cities across Mexico, Wal-Mex has more than 900 stores and restaurants in Mexico
including Bodega food and general merchandise discount stores and Superama supermarkets,
Suburbia apparel stores and Vips and El Portón restaurants. Wal-Mex also runs about 195 Wal-
Mart Supercenters and SAM'S CLUB warehouses, which generate about 55% of the company's
sales. More Soon...
Case Study Keywords: Mexico, Wal-Mart, Walmex, WMT, Organized Retail Industry, Business
Strategy, International Operations, Consumer behaviour