Walmex, Walmart’s Mexico and Central America business, is planning to spend nearly $1.5 billion in the region in 2023. The investment, which is up 27% from the amount spent in 2022, will primarily be used to remodel and maintain existing stores while opening new locations, along with improvements to supply chain and technology.
Walmex plans to invest 45% of the funds to upgrade an unspecified number of existing stores. Initiatives on this front including boosting omnichannel capabilities and implementing projects that will improve efficiency, sustainability and accessibility at these locations.
Another 29% will be dedicated to opening new stores and clubs, with the goal of expanding Walmart’s reach in the region. The new stores are expected to contribute 1.2% to 1.4% sales growth in 2023, and Bodega Aurrera discount stores will continue to be a focus.
Another 12% will be put toward supply chain improvements designed to boost both capacity and the customer experience. The final 14% will be used in technology investments that will improve Walmex’s digital platforms, analytics capabilities and automation at both stores and distribution centers.
Walmex also reportedly has received approval from Mexican authorities to purchase a Mexican electronic payments provider, according to Reuters. The retailer also announced that it will launch a new health membership product, using the almost 1,500 pharmacies and 500 doctor’s offices across stores in the region, that will offer subscribers unlimited 24/7 remote medical service, ambulances in case of emergency, discounts on specialists and a 5% discount at pharmacies.
This introduction reflects Walmart’s medtail investments in the U.S., where Walmart Health plans to open 28 new locations by 2024, bringing the total number of sites to more than 75. The expansion also will extend its footprint into Missouri and Arizona for the first time.