Walmart México has announced it will invest US $1.3 billion to expand and strengthen its logistics infrastructure.
The money will go into building new distribution centers and expanding existing ones over the next three years and is in addition to investment that will be spent on opening and remodeling stores, said CEO Guilherme Loureiro.
“To meet our growth goals and reach more corners of the country, we need to strengthen our logistics infrastructure,” he said.
Those goals include doubling annual sales between 2014 and 2024. Sales were about $28 billion last year.
Walmart México, which has nearly 2,300 stores, is the country’s largest private-sector employer with 200,000 workers. The new investment will increase that number by 10,000, the company said.
The announcement was made at an event with President Enrique Peña Nieto at his official residence, Los Pinos. The president said the investment reflects the company’s confidence in Mexico, which he described as the principal economic engine of Latin America and one of the few economies in the hemisphere that are growing.
Loureiro said Walmart sees Mexico as “a country rich in opportunities and a fertile land in which to grow.”
He also observed that the new money “was generated by profits obtained in Mexico,” appearing to attempt to quell any criticism that jobs or investment were being transferred from the United States.