Wal-Mart plans to open new stores in nine Central and South American countries this year, reports the Latin Business Chronicle.
Experts say the global recession is helping Wal-Mart make new inroads because its low prices are attractive to consumers when budgets are tight.
While other companies are reporting low growth or no growth, Wal-Mart’s earnings topped $13 billion in 2008 — up 5. 2 percent over the previous year, with “strong performance” in Brazil and Mexico.
This is prompting Wal-Mart to invest more of its dollars south of the border — with additional stores in Argentina, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Chile and Puerto Rico.
–Ronnie Lovler/Newsdesk.org
Source:
“Wal-Mart’s next conquest: Latin America”
Latin Business Chronicle, March 27, 2009
All industries are all affected by the economic crisis. Whether it is an industrial company, car manufacturer, computer company, or even the recycling facilities are also badly hit by the crisis. The lesser the demand, the lesser their revenue will be. But for Wal-Mart, it’s different because most people now will go to a cheaper store for a very tight budget. We just hope that this recession will end soon and that our economy will get back on its greatest shape.
I think that Wal-mart is doing a service that helps people in hard times and should be encouraged.
The more significant question is, will an influx of cheap, foreign-made goods sold by a business that siphons all profits back to Scottsdale, Arizona do anything to alleviate long-term poverty in these countries?
I don’t think any of the Latin American countries should consider this, Wal-mart will only monopolize existing establishments and family-owned general stores.