Reuters reports that Wal-Mart Mexico’s (sometimes called Walmex) sales soared in the first half of the year and net profit rose by almost 20% indicating that there is a strong economic recovery unfolding in Mexico. Walmex,Mexico’s largest retailer,is 31% American owned and boasts over 1,200 stores,including Sam’s Clubs,and almost 200,000 Mexican employees,more than any other retailer.
While sales in the U.S. have slumped during the recession,Walmex is growing at lightening speed,faster that its Mexican competitors and even beating its parent company in the U.S. Walmex has grown into a economic behemoth that is now bigger than its closest three competitors combined. Why the massive growth?
One reason is that Mexico’s economy is surging,not sputtering,out of the global recession at a 4.5% growth rate,much faster than expected,beating the U.S. and most other major world economies. Consumers feel more confident in the economy and are showing that sense of exuberance at Walmex check-out counters scattered all over the country. According to Bloomberg’s,this economic growth and consumer spending is expected to continue beyond the end of 2010.