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Wal-Mart slows expansion in its Mexican division

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Wal-Mart Stores’ Mexican division announced plans to further slow down its expansion efforts this year amid a sluggish Mexican economy and weakening peso retated to slumping oil prices.

Chief financial officer Rafael Matute made the announcement on Wednesday (March 18) during a meeting with analysts. Walmart International CEO David Cheesewright first mentioned the slowed expansion in October.

Walmex sold assets and begin to focus on its supermarket business amid the macro-economic slowing in 2014 which has continued.

"This year, 2015, will be a year of pause," Walmex CEO Enrique Ostale told analysts. "We're looking for a greater return on our investments."
 
The company said it will spend $809.45 million this year on maintenance and the expansion of its sales floors. Malute added the company would expand its total sales floor area by 2.4%.

Walmex opened 132 outlets last year, and expanded its total shop floor area by 3.9%, down from the 4.4% originally expected.

Same-store sales fell 0.2% in Mexico last year, hurt by weak demand and tough competition. Last month the retailer reported a 40% rise in fourth-quarter profit last month.

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