15 January, 2008 – Supermarket giant Wal-Mart is to invest R1.2 billion (US$693) in its Brazilian operation this year, opening dozens of new stores.
Wal-Mart, which is the third biggest retail outfit in the South American country, said it plans to increase its investment by 20 pct and open 36 new shops in the next 12 months.
Last year, the company spent R1 billion and added 20 outlets to its portfolio in Brazil.
Brazil is proving an attractive investment for many retail companies as the region’s largest economy is experiencing a consumer boom triggered by low interest rates. The Brazilian economy is expected to grow by 5 pct this year.
Wal-Mart’s 2008 investment plans in Brazil is thought to outstrip its foreign and domestic rivals including Carrefour and Grupo Pao de Acucar.
Its extra investment is expected to create 5,000 jobs. The US firm currently has over 300 stores in Brazil employing almost 65,000 people.
Grupo Pao de Acucar is expected to pump R1 billion into Brazil this year, opening over 100 stores. French company Carrefour said last month it planned to invest R1 billion annually into the country over the next three years.