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By
Reuters
Published
Aug 6, 2009
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Mexico Walmex July same-store sales up 4.6 percent

By
Reuters
Published
Aug 6, 2009

MEXICO CITY, Aug 5 (Reuters) - Retailer Wal-Mart de Mexico, or Walmex, said on Wednesday 5 August its July same-stores sales rose 4.6 percent from a year ago, above analysts' forecast, as strong promotions attracted more customers to its outlets.


www.walmartmexico.com.mx

Analysts polled by Reuters were looking for a 3.4 percent rise in monthly same-store sales, which are those recorded at outlets that have been open for at least 12 months.

July was particularly hard for Walmex as one of its rivals, Comercial Mexicana (COMEUBC.MX), held its annual month-long fire sale, which attracts many bargain hunters as Mexico faces its worst recession in decades.

A recent report from Banamex brokerage said a sample basket of 22 staple products showed Walmex had cut prices by nearly 5 percent in July from the previous month.

Traffic to Walmex stores in July rose 5.1 percent from a year ago, reflecting the success of its promotional strategies, although the average amount spent by customers on every visit to Walmex stores slipped 0.5 percent from a year ago.

The slight ticket decrease could also be attributed to aggressive price cuts.

Tough economic times in Mexico have increased unemployment, squeezing clients' wallets and forcing them to reduce purchases or restaurant visits.

Walmex, a unit of U.S. giant Wal-Mart Stores (WMT.N), rose 0.76 percent to close at 46.65 pesos on Wednesday 5 August before sales results were disclosed.

Walmex (WALMEXV.MX) also posted a 4.6 percent sales increase in July of 2008.

(Reporting by Cyntia Barrera Diaz; Editing by Richard Chang)

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