Walmex identifies 300 cities for possible store openings(70104)

Wal-Mart De Mexico Eyes 300 New Cities For Growth - CEO

Retailer Wal-Mart de Mexico SAB has identified 300 new cities in Mexico and Central America where it could open stores, in addition to seeing room for growth in its existing 348 cities, the company's top executive said Wednesday.

At an investment event in Chicago, relayed via webcast, Walmex Chief Executive Scot Rank reiterated the company's plan to expand floor space by 11% this year in Mexico and 3.5% in Central America.

Walmex bought the Central American operations from parent Wal-Mart Stores Inc. and regional investors in March, adding 519 stores in five countries to its business.

Rank said the integration of Central America into Wal-Mart systems is progressing "relatively slowly," and that it will be 18 months before the company steps up growth plans there.

The official said there have been some positive recent signs of a pick-up in sales of discretionary goods as the Mexican economy recovers from recession.

Sales of television sets were helped by the approach of the 2010 World Cup, but there have also been increases in sales of clothing and home appliances, which had suffered during the economic downturn, he said.

Walmex reported 5.4% same-store sales growth for May, and "June is off to a good start as well," Rank said.

Walmex identifies 300 cities for possible store openings

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