• JANUARY: Walmart’s Mexico subsidiary reported its weakest January sales numbers since 2014, growing at 2.7% in same-store sales – regarding January 2019 – raising some doubts about the recovery of the Mexican economy, which underwent a slight contraction last year.
• UNITS: Mexico’s largest retailer, Walmart underwent its largest expansion last year (134 stores opened), reaching a total of 2,571 retail units. According to analysts, a delay in payroll in late January could be the cause of the slowdown in January sales, but the company continues to be cautious.
• DOUBTS: “We believe it will be relevant to review the (February) data to determine if the economic slowdown continues or if (Walmart sales) were affected as a result of the delay in bi-weekly payroll”, says Verónica Uribe, an analyst at Grupo Financiero Monex.
• FORECAST: The International Monetary Fund (IMF) said last month that economic activity in Mexico will rebound to a 1% growth in 2020, after a slight contraction of -0.1% in 2019. Several analysts believe that private consumption is expected to be one of the key forces behind the recovery.
