Walmex has announced a deal to sell off its Suburbia apparel banner, in a deal worth 19bn pesos ($1.03bn), as part of its plans to streamline operations in the market.
Suburbia, which operates 119 outlets across the country, is being acquired by El Puerto De Liverpool for 15.7bn pesos (including debt). Walmart will also be eligible for an additional 3.3bn pesos, related to items such as dividends.
Earlier this year, Walmex had said it was looking to sell the unit in order to focus on its discount stores, pharmacy operations, and fresh food business. The deal follows the sale of its Vips restaurant chain and the Banco Walmart operations over the past three years.
Mexico is Walmart’s second-largest market globally, and the group has said it wants to double its local revenues ($26.4bn last year) by 2024.
Liverpool operates more than 100 department stores across Mexico, and the deal makes it a major player in the market, particularly amongst urban shoppers (one of Suburbia’s key demographics).
- Cutting back formats and doubling the sales of what remains…
- Safe to ignore if it were not Walmart outlining its strategy
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