|Mexico's Walmex Sales Seen Up 3.3 Pct in Dec|
Gabriela Lopez - Reuters
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January 05, 2011
Monterrey, Mexico - Mexico's top retailer Wal-Mart de Mexico is expected to post a 3.3 percent year-on-year rise in December same-store sales, as the country's recovery in consumer spending remains subdued.
Six analysts polled by Reuters expect Walmex's sales growth for the last month of 2010 to be lower than the 4.3 percent year-on-year increase in December 2009, but stronger than the 0.5 percent rise in sales in November 2010 compared to the same month of 2009.
"We think that sales still reflect the slow recovery in demand in Mexico," Citi said in a report, adding that Walmex's low-price strategy and increasing number of stores should help it gain market share.
Mexico is limping back from a severe recession and consumers are still not spending enough to support a consumer-led recovery. Walmex has been trying to undercut its competitors like Comerci over the past few years and expand aggressively in the fragmented Mexican retail market.
Walmex, a unit of U.S. retail giant Wal-Mart Stores Inc, is due to report its sales results on Thursday.
(Editing by Bernard Orr)