WAL-MART EXPANDS AND REBRANDS ITS BRAZILIAN HYPERMARKETS DESPITE POOR SALES

WAL-MART EXPANDS AND REBRANDS ITS BRAZILIAN HYPERMARKETS DESPITE POOR SALES

Chamber Articles Category: Industry News Post Date: 03/13/17 Source: plus55 By: plus55
Article Content

Over the recent holiday season, Wal-Mart’s sales in Brazil dropped by 4.1 percent. Compared to increases by 8.9 percent across Mexico and Central America, the Brazilian hypermarkets are a depressing sight.

However, the American company isn’t yet willing to give up on the Latin American giant. Quite the opposite: the company has announced a $320 million injection into the Brazilian market over the next three years. The money will go towards re-branding its local branches with a stronger link to the American name.

Wal-Mart purchased local branches Hyper Bompreço and BIG back in the mid-2000s. Today, as Brazilians face rising prices coupled with steep unemployment rates, they trust these staple brands for their great deals and cheap prices. The company’s Brazilian director promises cheaper prices, a wider assortment of products, and more fresh produce. But putting the Wal-Mart brand on these familiar Brazilian branches may not appeal as much to shoppers who would rather turn to a trustworthy name. And in these times of uncertainty, many Brazilians prefer to frequent their neighborhood corner store or street market where they can purchase items on credit or haggle face-to-face. Read Full Article