Walmart closes its online market in Brazil

In June of last year, the private equity fund Advent International acquired 80% of Walmart's operations in Brazil. EFE / Archive

RIO DE JANEIRO.- The US supermarket chain Walmart announced Friday the suspension of the sale of its products online in Brazil on the grounds that it represents «a minimum part» of the company’s total sales.

According to the disclosed note, the subsidiary in Brazil of the supermarket network will develop a new «multichannel» content strategy for online commerce, although it did not mention when it will be implemented.

«Walmart Brasil announces today the first steps in the reformulation of its digital strategy, initially the marketplace operation will be discontinued, which today represents a minimum part of the company’s total sales,» the Walmart network said in a statement.

In the note, the US company said it will maintain its operations with the shopping club and physical retail, «segments in which Walmart Brazil sees an enormous potential for growth.»

It will also do so with hypermarkets «Maxxi Atacado», a format that began to be implemented since April in more than 40 cities in the country.

In June of last year, the private equity fund Advent International acquired 80% of Walmart’s operations in Brazil.

However, Walmart Brasil retained 20% of its business in the country, where it has been operating for 22 years and has a network of more than 400 stores spread across 18 states in the country.

According to the Brazilian Association of Supermarkets, Walmart Brazil last year ranked third in the ranking by gross billing in this nation, behind the Carrefour and Pao de Açucar groups.

As reported this year in the United States, the retail chain closed its fiscal year 2019 with a net profit of 6.670 billion dollars, 32.4% less than the previous year, although it obtained a very positive last quarter thanks to the increase in trade electronic.

The Bentonville (Arkansas) multinational reported a net profit per share of $ 2.26 between February last year and January 2019, compared to $ 3.28 for its 2018 fiscal year, when it earned $ 9,862 million.

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