|Walmart de Mexico trims store expansion plans for 2012|
|Thursday, 21 June 2012 13:27|
Walmart de Mexico (Walmex), a unit of retail giant Walmart Stores, has slashed its store expansion plans for 2012 as it operates under tightened scrutiny following allegations that it bribed local officials to open stores more quickly.The company, which cuts its planned investment spending by 11%, said it has added steps to its process for opening stores, which will result in opening fewer shops than the previously announced.
Walmex will now open between 325 and 335 stores in Mexico and Central America this year and through the first quarter of 2013 for an investment of about MXN17.48bn ($1.28bn). In February, the retail chain announced investment of MXN19.7b ($1.44bn) in opening 410 to 436 stores.
The growth now implies an 8% rise in installed capacity in Mexico and a 9% increase in Central America compared with 2011.
In addition, the retailer said it has decided to move store openings scheduled for the end of December into January, so as to avoid coincidence with Christmas.
Attorney General's office in Mexico has launched a preliminary investigation into whether Walmex bribed officials to expand its business.