By Anthony Harrup
MEXICO CITY — Mexico’s biggest retailer, Wal-Mart de Mexico SAB, said Wednesday that its sales growth accelerated in November, the month that includes Mexico’s Black Friday-style shopping event.
Total sales for the unit of Bentonville, Ark.-based Wal-Mart Stores Inc., which also includes Central America, rose 7.9% from November 2016 to 53 billion Mexican pesos ($2.8 billion).
Same-store sales in Mexico grew 7.6%, up from 4.7% in October and 5.8% in November of 2016. The company, also known as Walmex, served 1.2% more customers who spent on average 6.4% more per visit. Same-store sales in Central America rose 6.9% from a year before.
Mexico’s version of Black Friday, called El Buen Fin, ran Nov. 17-20 over the Revolution Day long weekend.
“Like other editions of the event, the campaign remained focused on electronics, high-ticket items, and apparel,” UBS said in a recent report.
The investment bank concluded that companies were more aggressive in offering interest-free credit than in slashing prices, and while online sellers offered the steepest discounts, Walmex appeared to be the winner among physical stores.
“Walmex and Sam’s [Club] had a broad assortment and the lowest prices, with an estimated price discount above 5% when compared to the average in our sample. In the online space, Mercado Libre and Linio were more aggressive than Amazon,” UBS said.
Walmex, which runs 2,339 stores in Mexico and 773 in Central America, is investing to foster its online sales that have seen strong growth this year, although e-commerce still represents less than 1% of its total sales.
“Walmex was competitive, but did not have the lowest online prices all the time (versus every day in the physical world),” UBS said of El Buen Fin.
Write to Anthony Harrup at [email protected]
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