Walmart Selling Argentina Business
Walmart Inc. continues to rebalance its international portfolio as the global retailer said it would sell its business in Argentina to Grupo de Narváez, a Latin American group. It didn't disclose a sale price.
Bentonville, Arkansas-based Walmart said it would continue to support the Argentina business through transition services and sourcing agreements under the new ownership. However, it won't retain an equity stake.
Last month, the company sold U.K. retailer Asda, but retained a minority stake and a seat at the retailer's board. In 2018, Walmart sold an 80% stake in its Brazilian operations to a private-equity firm.
It appears that Walmart is focusing instead on less restricted, higher-growth markets such as India, where it acquired a majority stake in Flipkart, India's leading e-commerce company, in 2018.
In recent years,Walmart Argentina has significantly expanded its omnichannel capabilities to serve a broader base of Argentinians. Walmart Argentina started operating in 1995, with the launch of its first shop in Avellaneda. Since that time, the business has grown to more than 90 stores and 9,000 associates under the Changomas, Mi Changomas, Walmart Supercenter and Punto Mayorista banners. The Changomas, Mi Changomas and Punto Mayorista banners will continue to serve customers in Argentina following the transaction. Walmart Supercenters will be rebranded following a transition period.
Meanwhile, Dolores Fernandez Lobbe, president and general manager of Walmart Argentina, will continue to support the business through the transition period, after which she will move into a new role within Walmart, according to the company.
Judith McKenna, president and CEO of Walmart International, said: “We are very proud of our Argentina business and associates, as they’ve led and shown resilience throughout this year serving customers when they needed them most. We are excited by the local retail expertise the new owners bring to this already strong business, and we believe this deal creates the right structure to help it truly flourish for many years.”
Walmart operates stores in 27 countries under various names.