Walmart to invest nearly $1.5 billion in Mexico and Central America in 2023

MEXICO CITY (Reuters) -Walmart’s unit in Mexico and Central America, known as Walmex, plans to boost spending in the region 27% from last year to total around 27 billion pesos ($1.49 billion) in 2023, it said on Tuesday.

Just under half of the investment will go to remodeling and maintenance on existing stores, while nearly 30% will be used for new stores and clubs, Walmex said in a filing following an event with investors and analysts.

The planned investments are up from the 21.3 billion pesos Walmex spent in 2022. However, last year’s capital expenditures came in under estimates as some projects were deferred due to supply chain disruptions, the company said last month.

Some 12% of investments in 2023 will go to “expand and modernize the company’s supply chain,” Walmex said.

Walmex also said it had received approval Monday from Mexican authorities to purchase a Mexican electronic payments provider.

The company also said during the event it would launch a new health membership product, making use of the almost 1,500 pharmacies and 500 doctor’s offices across stores in the region.

“For $30 pesos, our customers can have access to unlimited remote medical service 24/7, nutrition services, ambulance in case of emergency, discounts on specialists and… a 5% discount at our pharmacies and get consultation at our doctor’s offices,” said growth lead Beatriz Nunez.

Nunez added that last year, the company delivered health solutions to over 1 million patients, excluding pharmacy customers.

“In 2023 we want to develop Health as a strong vertical, it is still in very early stages, but we know how relevant it is for our customers,” she added.

($1 = 18.1026 Mexican pesos)

(Reporting by Kylie Madry; Editing by Daina Beth Solomon, Bill Berkrot and David Gregorio)